Monday, September 29, 2014

Insurance policies for business owners? Gather more information

Business owners protect their property and liabilities with insurance policies. For every business owner, there are many types of insurance policies that provide coverage in many areas. However, before getting business insured, one must gather complete information about different plans.

Some plans provide coverage for specific things however, some other plans provide cover for property, liability etc., all in one package. However, there are two type of coverage in business owner policy (BOP):

Property – Many insurance policies cover buildings and all belongings inside owned by client. Coverage is provided for the disasters that are listed in plan. Mainly disasters like vandalism, fire, wind, explosion and smoke etc., are included in contract. However, in this plan, several types are offered to clients. Some of them cover only building and some other cover everything from building to components.

Liability – Liability is a main clause in any protections plan for companies. In it, there are mainly two type of coverage. One is general and other is product. Sometimes, a defective product can cause injuries or property damage to customers. Organization’s services can also cause harm to customers. In this situation, there are chances that customer will file a lawsuit to sue company for damages.

This is where insurance company comes for the rescue of their clients. They provide product coverage for firm’s legal liabilities. They will pay for the medical expenses for injuries and property damages. In general liability, all types of payments are covered like cost of lawsuits, settlement contracts etc. Coverage is provided in this type when other people are harmed due to accidents or negligence etc.

However, BOP does not provide economic protection in some other conditions like:

Auto – Usually BOPs does not include vehicles used in businesses. For vehicle like trucks, cars etc. owners need to buy different policies. In the case of accidents, property damage and injuries, BOP insurance company will not make payments.

Workers’ compensation –
If any employee of company gets injured while working, he can sue organization for negligence. However, BOP does not provide cover in this area too.

Disability – Sometimes, an employee is unable to work due to sickness or injuries etc. In this situation, company is liable to provide benefits to worker.

Errors & omissions –
Customers cab claims benefits due to the errors or omissions in the products or services of a company. Usually, BOP does not cover it.

In cities like New York, every insurance agency offers different policies. Business owners can choose their plan according to their requirements.

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