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Why You Want Car Insurance

When you first bought that car, you were probably mainly concerned about how it looked and how much you had to pay each month. However, if you want to keep driving your new ride, you need to understand the importance of car insurance. There are a lot of options out there, which is why I decided to make a website about auto insurance policies. As a car enthusiast, I currently own 21 cars, and I could tell you horror stories about people who decided not to worry about insurance. If you want to protect your investment and your personal wealth, auto insurance is something that you need to have. I made this website to teach others about auto insurance, so that you can make a great choice.

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Why You Want Car Insurance

3 Types Of Insurance Every Business Owner Should Have

by Luke Fisher

Do you remember the day you decided to start your own business? Although you might have had visions of round-table discussions and skyrocketing stock prices, the real world can be a little unkind to companies—unless you protect yourself with an ironclad insurance policy. Here are three types of insurance every business owner should have, and why:

1: Product Liability Insurance

After you have made your products, packaged them, and shipped them out into the world, you never know how people will use them. Unfortunately, if your product injures someone, it could open your business up to a serious lawsuit. Fortunately, product liability insurance is designed to protect companies against these types of situations. Here are a few reasons you should invest in product liability insurance:

  • Manufacturing Mistakes: What would you do if you sent out a product that contained potentially harmful materials? One large food manufacturer recently found themselves in this situation after they accidentally sent out millions of boxes of macaroni and cheese that contained metal fragments.
  • Packaging Issues: That packaging might seem secure, but what if it breaks apart in sharp shards? You never know how packaging will react under different circumstances or how people will decide to open a container; which could open your business up to liability.    
  • Functionality Problems: You can't always guarantee that your products will work perfectly. For example, if you made washing machines, what would you do if the machine motor got too hot and started on fire? Before you knew it, you could have lawsuits stemming from bodily injury claims and lost homes.

Fortunately, product liability insurance can protect your company against all of these situations, so that you can stay in business.

2: Property Insurance

How much is your building and all of your company property worth? How much inventory does your production line pump out each and every day? What would you do if you had to deal with vandalism or a fire? If you are like most business owners, you might be looking at weeks of downtime, lost merchandise, and employees who are out of work. However, property insurance is designed to protect your investments and help you to endure difficult losses. Here are a few reasons you should always have a property insurance policy in place:

  • Business Interruptions: Your product liability insurance might help you to pay for your injured customer's medical bills, but what about your terrible sales stemming from your new reputation? Property insurance can be used to help you during business interruptions caused by product problems, building damage, or stolen equipment.
  • Peril-Specific Incidents: Every business is different, which might mean that a product insurance policy that works well for one company won't fit your operation. Fortunately, peril specific insurance can be underwritten to accommodate your needs, so that you don't have to recover from losses on your own. For example, if your warehouse is near the ocean, you might need property insurance that covers your building in the event of a tsunami.

Before you meet with your insurance agent to discuss property insurance, take the time to carefully evaluate any loss that could occur. Never assume that your one-size-fits-all policy covers strange instances, and make sure that your coverage is clearly spelled out in writing. 

3: Errors and Omissions Insurance

Unfortunately, your business could be damaged by more than a hurricane or a serious manufacturing error. If any of your employees makes a mistake or decides to break the rules, you might be asked to answer for your negligence or lack of training. Although you might be able to prove that your employee acted on their own behalf, it might cost you thousands of dollars in legal fees to keep your company afloat.

However, errors and omissions insurance can help you to cover legal costs during those types of lawsuits, so that you don't eat through your company profits in an afternoon. Errors and omissions insurance can also cover you if you are sued by a financial advisor or broker if a deal falls through.   

By protecting your company with the right insurance policies, you might be able to focus on improving your company—instead of what to wear to court.  For more information, contact a local business insurance company. 

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