Business insurance is vast category of insurance that covers a wide range
of eventualities for business owners and businesses as legal entities. This is
an important distinction, as an owner is usually not held liable for claims
against his or her business in the normal course of events - so the business is
insured separately against financial remuneration claims.
Business insurance can be divided into two broad types. There is the
aforementioned liability insurance that covers the business against claims
against it by other parties, and there is insurance cover that protects a
business from the consequences of some sort of loss or damage incurred. The
former pays out to a third party via the business, the latter to the business
itself as compensation.
The most straightforward type of business insurance cover is insurance
against loss of income or loss of assets. This would cover eventualities such as
a fire that destroys equipment, or a breakdown of equipment that prevents
operation of the business, resulting in a loss of money that would otherwise
have been earned. This would come into effect in addition to cover for assets
that are damaged or destroyed, as a fire might also cause a business to shut
down for a while, causing further loss.
Another common form of business insurance is professional liability
insurance, which is a form of cover usually taken out by professionals such as
doctors, accountants, lawyers and the like. This covers the professional against
being sued for liability as a result of some accidental event that caused losses
to a client.
Business liability insurance covers a really wide range of contingencies.
Below is a broad overview of a few of these areas. It would include physical
harm suffered by employees or visitors to the business premises, as well as
risks that employees would face in the execution of their jobs - for example
building site accidents in the case of construction workers. Intellectual
property liability would cover a media company against accidental infringement
of copyright, for instance, while cyber liability cover would protect against
the damage that a virus may do to clients' information that a company is storing
in digital form. Contractual liability cover would protect a business from an
event that has been accidentally omitted from a contract, resulting in
You can clearly see that this is a very broad area, and if you're a business
owner you would do well to consult a recommended insurance expert on your needs.
South African Companies That Offer Business Insurance
|The very successful insurance company, Outsurance, has expanded it service offering to provide businesses with insurance. The advantage of using Outsurance for business insurance is the fact that they deal direct and thus cut out middleman costs.|
|2017/06/23 08:50:56 AM|