Business Insurance:
Business insurance, to explain it in simple terms, is about paying a premium you can afford to cover possible costs you may not be able to afford. When you pay your insurance premium payments to the insurance company, you are taking a risk, in so far as there are no guarantees of getting your money back. On the other hand, if you suddenly have an accident or if your office catches fire and goes up in smoke or if someone files a successful claim against your business, you have the guarantee that the insurance company will cover the often stupendous costs involved. This is what is known as liability insurance and all businesses worth their salt usually insure themselves with different liability insurance policies like General Liability, Employers Liability, Hired and Non-owned Auto Liability and Automobile Liability. In addition to these insurance policies, you should also get an Umbrella Insurance Policy. This will provide an additional liability protection by extending the limits of your liability insurance protection. You will realize just how handy this is the event that your business should ever face a law-suit.

Having an insurance policy helps:
Legal fees and Lawyers’ fees are no small matter and, depending on your business and lawsuit type, can even go into millions. If this happens, you will be mighty grateful you don’t have to fish out the millions from your own pocket, especially if you don’t have them and are required to forfeit your entire property and future inheritance to make ends meet.

Having business insurance coverage is not only a safety net against the unthinkable happening, but also necessary for conducting regular business transactions. For example, if you plan on renting your office premises, you will have to furnish an insurance certificate as a rent-money guarantee. So if you suffer a setback and your business folds up, the landlord doesn’t get to share in your loss and miss out on the rent money.

Insurance coverage:
There is a difference between property insurance coverage and liability insurance coverage. The former is based on the estimated market value of your property. The latter value is hard to pin down. There is no way of knowing beforehand how much costs you are likely to ring up if you get landed with a law-suit or have an accident. Your general liability policies will not, of course, cover these costs. It is the business umbrella liability insurance that will provide the required extra coverage.