Business insurance is a tool for risk management. This helps the business in exchange for a small premium, to transfer whatever risks there are or losses that are sustained, to the insurance company. There are various reasons why the businesses need insurance. They need it to protect themselves against theft, fire, legal liability, natural disaster, death, automobile accidents, disabilities of key employees and so many more reasons.
Small businesses need it to protect themselves from reducing profits, bankruptcy or reducing uncertainty. This isdue to the fact that they cannot invest as much as large companies can in risk management strategies and experts to help them with managing risks. Therefore, they need to take responsibility for all the risks themselves and to decrease some of the risks they protect themselves with the help of purchasing insurance.
Business insurance in MA is offered by Murphy Insurance Agency. This offers various kinds of business insurance. Some of them are:
Property insurance for losses due to theft, loss of use as well as physical damage. It is better to get comprehensive property insurance rather than individual ones as not only are gaps in coverage avoided but speedier settlement of claims is possible and duplicating coverage charges are avoided as well.
Legal liability is either general or product liability. General liability covers injuries to employees, vendors, and customers either on or off the company premises as a result of negligence by the company. The product liability only covers problems due to defective merchandise or when the services are not adequately performed.
The worker’s compensation is mandatory in almost all states, and it provides disability coverage and medical coverage for job-related injuries to employees. This is regardless of if the injuries occur on company premises or not.
Company vehicle insurance is akin to personal use vehicles.
Key person loss is insurance against disability as well as death of persons who are the key for the operations to be run smoothly. These key persons are usually the owners, managers, and partners.
Life and health is insurance which is provided to ensure the employees’ welfare is safeguarded.
Business Interruption insurance which is for property and liability provides against risks which are specific in nature and do not cover the indirect costs which occur due to losses. For example, when the building is damaged due to fire, the repair costs or replacement costs of the equipment and building is covered but not the loss which is faced due to the shutting of the business for the time when the repairs or replacement was being done. Whereas business interruption insurance provides the difference between the normal income and the income during the period when the business was facing a downtime.
Business Opportunity plans cover the basic coverage for equipment, property, and liability protection. Sometimes it could cover business interruption as well.
E-commerce insurance covers protection incase there is hacking or other such problems.
These are just some of the kinds of business insurance which are offered by insurance companies.