Chapter 25
Insurance
The superior man, when resting in safety, does not forget that danger may come.
—Confucius
The idea of insurance is a contradiction—you buy something that you hope you will never need. But even so, you sure are glad it is there when you need it.
Types of Insurance
When you own a small business, the array of potential insurance products can be overwhelming. Which types of insurance are really important?
Health
Employees consistently rank health benefits among the most important fringe benefits of employment. Because it is so important and so complicated, this issue is covered extensively in Chapter 2829.
Business Owner
Business owner insurance is also known as catchall coverage. It is a basic policy that provides protection from fire, other mishaps, and some liabilities.
Property and Casualty
Just as you insure your house against property loss, so, too, must you insure your business for the same. Property insurance protects your business against physical damage or loss of business assets. It is used when troubles such as fire, theft, explosion, or vandalism damage or destroy your equipment, inventory, or building.
Consider insuring the following:
- Buildings and structures, whether leased or owned
- Equipment, whether leased or owned
- Inventory
- Machinery
- Cars and trucks
- Computers, printers, fax, and phone equipment
- Furniture and supplies
- Money and securities
- Important papers, books, and documents
- Signs, fences, and other outdoor property
- Intangible property such ...
