The insurance jungle is confusing so you have the choice between many different insurance policies and countless tariff offers. Anyone who starts a business should focus on the most important ones. In addition to business health insurance these are various liability insurance and legal expenses insurance. Business insurance covers ongoing costs such as salary payments and rents of the company if it comes to an interruption of the work. Reasons for this can be a fire or a machine failure. But which commercial insurance does a company exactly need? In principle, there are two types of commercial insurance. On the one hand business liability insurance that protects the company or its own company from the claims of third parties. On the other such insurance that settle the damage suffered.
Liability Insurance
Private liability insurance is the most important voluntary insurance and should be completed by everyone. The company should also be comprehensively secured.There are different types of liability insurance but not everyone makes sense for every company. First of all you have to identify your company specific risks in order to protect them.This liability insurance covers damage caused by the company or its employees. Damage to persons and property damage are insured. As far as public liability is concerned one should make sure that an environmental liability is included. It can be used if the company is damaged by air, soil or water.
Asset liability
It protects you from the harm that can be done by dealing with the assets of others. It covers no personal injury or property damage but comes up for so called real financial losses. Among the target groups of this insurance include tax consultants, investment advisers, notaries, architects and lawyers.
Product liability
Anyone who produces or trades products should be sufficiently secure. If the delivered goods are defective high follow up costs may arise. For example persons or objects could be damaged by a faulty product.For most product liability insurance companies you must provide detailed information about the product. This insurance should therefore be completed only if you know what you are producing or what you are dealing with. This insurance covers damage to objects that arise during operation, for example due to a fire, theft or bad weather.
Conclusion: The legal expenses insurance
In most cases it is very expensive to get your rights out in court. Cost protection and legal assistance are provided with the legal expenses insurance which is mandatory for every entrepreneur and the company.As a commercial insurance company insurance is called in contrast. As the private health insurance that belongs to the personal insurance for the founder. A commercial insurance should protect the company from the financial consequences in case of damage.