1 – What it is
Business insurance is a type of insurance package that is made especially for companies instead of for individuals or families. Although a business package may have benefits for individuals, the central focus of a business package is the company itself. For instance, if the business folds, all of the individuals who are receiving benefits under the business package will cease to receive those benefits.
2 – Who it is for
Business insurance is meant for companies of all sizes. Many people may believe that business packages are only meant for enterprise level corporations. As a matter of fact, smaller businesses should likely consider them more – start up companies usually do not have the cash flow to deal with a large out of pocket expense that a business package would cover.
3 – How it works
A business package protects certain aspects of a business from harm. These protections can be as varied as the company needs. For instance, a company may do business in a foreign country that has a great deal of social strife. Insurance can be bought to insure stockholders in the business against that civil or political unrest. Certain assets in the business can also be insured including employees in order to make sure that the company is able to continue functioning if something happens to the asset.
4 – Different types of coverage in existence
The contracts for a business can be created specifically for that company. Large, enterprise level companies will often create their policies line by line with the underwriting company.
5 – Major benefits
The one major benefit of a business package is the ability of a company to maintain its cash flow if something big happens that requires a large expenditure from the company itself such as an accident.