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Small Business Insurance

Using Small Business Insurance

Using Small Business Insurance

Small business insurance is an important investment for many small businesses, although oftentimes these companies who most need the protection afforded by insurance for a small business do not obtain this insurance in an effort to save money and reduce overhead. However, the short term benefits are often negated.
 
 
The most common types of small business insurance that a business owner may want to pursue are product liability, home-based business insurance, Internet business insurance, worker's compensation, criminal insurance, business interruption insurance, key person insurance, or liability insurance.
 
 
General and umbrella liability insurance for small businesses can cover legal issues that result due to claims of negligence and can protect against payments, medical expenses, legal defense, and settlements or judgments that must be paid during an appeal.
 
 
Small business insurance for product liability covers liability that may result from a product a company manufactures, wholesales, distributes, or retails, as well as breaches of express or implied warranties, and defective products, warnings, or instructions.
 
 
Home-based business insurance for small businesses operated from the home is important because homeowners' insurance policies usually do not cover home offices. 
 
 
Internet small business insurance protects companies that operate on the internet from damage done by hackers and viruses, with e-insurance for small businesses protecting against meta-tab abuse, banner advertising, or electronic copyright infringement.
 
 
Worker's compensation is required, in varying amounts, in most states based on the size of the company.
 
 
Criminal insurance for small businesses protects against theft, malicious damage, hacking, vandalism, and embezzlement.
 
 
Small business insurance for business interruption can be important to cover losses due to catastrophes which prevent normal business operation, such as fire, floods, or natural disasters.
 
 
Key person insurance for small businesses is just like life insurance, except a business is named as the beneficiary.

Liability Insurance for Small Business

Liability Insurance for Small Business

There are three common forms of liability insurance for a small business. The most common of these is general liability insurance, although this is also known as umbrella liability insurance for a small business. The other common form of liability insurance for a small business is product liability.
 
 
General liability for small business owners and large businesses alike cover legal hassles that a business may encounter due to claims of negligence. A general liability for small business policy can help protect the small business from payments which result from bodily injury, property damage, medical expenses, the cost of defending the small business against lawsuits, as well as providing relief from having to satisfy settlement bonds or judgments that a court may require while the case is undergoing an appeal procedure.
 
 
The relief from satisfying bonds or judgments during appeals usually will have to be repaid in the event the appeal is not successful, although the specific terms depend upon the specific policy which provides general liability insurance for a small business.
 
 
Product liability insurance for small companies can be important for any small business because every product is capable of contributing to personal injury or property damage. This liability insurance for a small business involved in the manufacture, wholesale, distribution, and retail of a product can be important because a litigious individual who is harmed may decide to file lawsuits indiscriminately if they are hurt, making protection from these suits vital.

Stay Safe With Small Business Health Insurance

Stay Safe With Small Business Health Insurance

Small business health insurance was one of the issues addressed by the health care reform bill passed by the United State of America in the early months of 2010.
 
 
As a result, many organizations and networks have formed with the express purpose of making small business health insurance more affordable for these small business owners, whether the companies were already providing insurance to their employees or are just beginning to assume this burden in light of the recent legislation.
 
 
The primary method of providing health insurance for small business employees is through the establishment of Small Business Health Options Programs, or "SHOP Exchanges." Under the bill passed into law, in 2014 these small business health insurance groups will involve companies of less than one hundred employees, although local legislation is allowed to limit the ability to combine in order to obtain cheaper health insurance for small businesses to a business with fifty or fewer employees.
 
 
Companies that grow beyond these numbers between 2014 when the law goes into effect and 2016 will be grandfathered in, regardless of which number is in effect in that state.
 
 
Until the law goes into full effect, companies with less than ten employees can obtain a full tax credit for a portion of the cost of providing a small business health insurance plan, while companies with between 10 and 25 employees can obtain a partial small business health insurance tax credit.

Small Business Health Insurance Plans

Small Business Health Insurance Plans

Small business health insurance plans are almost prohibitively expensive to provide under the current system. Making small business medical insurance more affordable was one of the main goals of the health care reform bill passed by the Congress of the United States of America and signed into law by President Barack Obama in March 2010.
 
 
The first way that the health care reform bill sought to make small business medical insurance more available was to facilitate the ability of small businesses to collaborate in order to barter for better rates from insurance companies. The theory is that the small business health insurance plans that these small business will be able to form if they collaborate will result in better rates than if each small business attempted to arrange their own independent health insurance plans with the companies.
 
 
The logic is that since the Federal Government, which through Medicare and Medicaid is the largest provider of medical care, is able to obtain better prices by virtue of its large size, and thus, increased bargaining power, then the small business health insurance plans that these conglomerations of small businesses will negotiate will be better than independent small business health insurance plans.
 
 
This plan should also make it easier for the health insurance companies since small businesses comprise more than one third of the economy of the United States of America. Having fewer groups to negotiate with may help the companies that provide the small business medical insurance to save on their overhead costs by reducing the number of negotiators they will need.