Most business owners will purchase a general liability policy to protect themselves in case of a lawsuit which is a good first step. What many people fail to realize is that there are a few other coverage’s that they should also include.
General Liability provides defense cost in case of negligence on behalf of you or your employees. This provides coverage for bodily injury or property damage.
Property coverage will protect you from damage or total loss of your equipment or supplies. There are three forms of property coverage we will discuss.
First coverage will be property coverage that provides coverage from fire, theft, wind of your building, equipment, products, inventory, supplies from inside your building. There is no coverage for this for flood. There is flood insurance that can be purchased separately to cover your building and property. This does not provide coverage for your equipment or product that leaves the building. The coverage that provides coverage for your property off premises is called Inland Marine coverage.
The second important coverage is Business Income which is under the property policy and needs to be added. This provides coverage for your ongoing expenses after an insured loss and the loss of sales due to this insured loss.
The third important coverage is Inland Marine coverage. This provides you with coverage for your property that leaves the premises. If you go off premises to a trade show, set up your equipment at a jobsite, you will need this coverage. The perils that are covered are fire, theft, vandalism, water damage.
Since you have made a large financial investment for your business it would be financial ruin if someone stole your property, leaving you without a way to create income. The cost is relatively inexpensive, and provides you the ability to continue operating your business.