Business Law > Insurance Basics > Basics | Liability | Property, Auto, Worker's Comp

Property, Auto, and Worker's Comp

Property Insurance:

Property insurance protects your business property against physical loss or damage by theft, fire or other means.
In the most basic business insurance policies, property coverage protects your furniture, computers, office equipment and other materials at a specified location.

For many businesses, this is not enough. You may need coverage for:

• Data, valuable papers, records
• Money and securities
• Employee Dishonesty
• Specialized equipment such as farm or contractors equipment
• Property that is in transit or away from your premises
• Consequential loss such as business income and extra expenses resulting from a covered loss
• Intellectual property – patents and trademark infringement

Automobile Insurance

You need the same kinds of insurance coverages for your business vehicle(s) you do for your personal autos.
If the vehicle is owned by the business, make sure the name of the business appears on the policy as the Named Insured.
If the company-owned vehicle(s) is the only one used/owned by members of your household, you should obtain expanded coverage under your business auto policy.

While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain the differences and options available to you.

Workers’ Compensation Insurance

Employers have a legal responsibility to their employees to make the workplace safe. However, even in the safest of environments, accidents happen.
Employers are required by State Law to purchase Worker’s Compensation Insurance.

Workers’ Compensation Insurance covers work related injuries and illnesses. It provides for the payment of medical expenses, rehabilitation costs and disability benefits for injured workers, without regard to who was at fault in the accident. If there is a fatal accident, death benefits may also be available to surviving spouses and dependents.

Key-Person Insurance

The loss of a key-person (including yourself) can cripple any company.

Appropriate policies will compensate the business for losses that result from a key person’s death or disability. The amount and cost of insurance needed for a particular business depends on the situation and the age, health and role of the key employee.

These policies are usually owned by the business, which is the beneficiary and pays the premiums.

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