What is the Purpose of Business Insurance?

The purpose of having insurance for business is to help cover the costs in the event of a claim associated with damages to property and liability claims from individuals. Without business insurance or with inadequate business insurance, paying out-of-pocket for costly damages, legal claims and expenses could be potentially devastating on a business and personal level.

At the time of writing some states are in lockdown and draconian restrictions have been placed on how, where, when and with whom citizens can congregate as a result of the rapid spread of the COVID 19 virus. Looting has not reared its ugly head so far, although fighting over the last pack of toilet rolls or bottle of hand sanitizer has been reported from time to time.

Liability insurance

Now might be as good a time as any to make sure the insurance which covers your business premises is up to date and offers adequate coverage. If the business premises are broken into by someone desperate for car spares, building materials or something else which he or she might need to convert to cash, make sure you are covered. If they injure themselves while on your premises, you might just find they have the cheek to sue you for damages - be warned.

Verifiable insurance

In some states, businesses are required to have specific types of insurance. As an example, Nevada state law requires that a handyman requires a contractor's license and verifiable business insurance if the work exceeds $1,000 in value. Laws vary from state to state and can become confusing if work is carried out across state lines.

Others such as Florida do not require handyman insurance, although liability insurance is something which any business owner should have. Possession of a contractor's license is...

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