Business insurance is absolutely essential. Without appropriate coverage a business can easily be ruined in the face of property damage, personal injury or legal claims from customers and employees. These risks vary widely, for example, there are certainly wide differences between the insurance coverage needed by a dentistry practice and a clothing store. Therefore each businessperson needs to ask the right questions to ensure they get the most appropriate insurance policy and a good deal.

1. What are the Business’s General and Business Liability Insurance Needs?

The term “business insurance” is used in several contexts. On one level the business needs to be insured against theft, fire, and water damage similar to the way people insure their homes; this is usually called general liability insurance. Commercial enterprises also require an additional layer of coverage known as business liability insurance. The liability insurance protects the business against legal claims from customers and others for damage to person or property. Both these types of insurance are essential to protect a business from ruination. It doesn’t pay to scrimp on coverage but neither is extravagance recommended.