Insurance Policies List to Protect Your Business and Assets

As a business owner, protecting your assets and operations is crucial to ensure long-term success. Liability insurance can help cover costs associated with lawsuits or settlements.

Having a well-rounded insurance policy can give you peace of mind and financial security.

Business interruption insurance can help replace lost income if your business is forced to close temporarily. This can be due to a natural disaster, fire, or other unforeseen events.

Investing in insurance policies can be a smart business move.

Life insurance provides financial protection to your loved ones in the event of your passing. There are two main types of life insurance: term and permanent.

Term insurance offers protection for a specified period, typically ranging from one year to a specific age, such as 80. If you die during this term, the company will pay the face amount of the policy to your beneficiary. Term policies are generally less expensive than permanent policies, especially for younger individuals.

Permanent life insurance, on the other hand, provides lifelong coverage and includes a cash value component. This type of insurance is more expensive than term life insurance but can be a good option for those who want to build cash value to supplement retirement savings or provide a death benefit for someone who will rely on them financially for a long time.

Here are the main types of permanent life insurance:

It's worth noting that joint life and survivor insurance provides coverage for two or more persons, with the death benefit payable at the death of the last of the insureds, making premiums significantly lower than for policies that insure only one person.

Term life insurance is a type of life insurance that provides protection for a specified period of time. You can lock in rates for a particular length of time, such as 10, 15, 20 or 30 years, and your premiums will be level during this time.

Term life insurance is usually the most affordable type of life insurance, making it a great option for those who want to cover a specific financial obligation, like the years of college or a debt.

The premiums you pay for term insurance are lower at earlier ages compared to permanent insurance, but term rates rise as you grow older. This is why it's essential to review your policy terms carefully to decide which term life options are suitable for your circumstances.

There are several types of term insurance, including renewable term, convertible term, level or decreasing term, and adjustable premium. Renewable term policies give you the right to renew for another period without evidence of insurability, but the premium will increase with each new term.

Here are some common types of term insurance:

If you don't pay the premium for your term insurance policy, it will generally lapse without cash value, unlike a permanent type of policy that has a cash value component.

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Permanent life insurance is a type of life insurance that provides coverage for your entire lifetime. It includes a cash value component, which can be accessed by taking a loan or withdrawing funds.

The premiums for permanent life insurance are more expensive than term life insurance, but they also provide a guaranteed death benefit and a cash value component.

Types of permanent life insurance include whole life insurance, universal life insurance, variable life insurance, and burial life insurance.

Whole life insurance has six basic variations, including non-participating whole life, participating whole life, indeterminate premium whole life, economatic whole life, limited payment whole life, and single premium whole life.

Non-participating whole life policies have fixed costs and generally low out-of-pocket premium payments, but they pay no dividends. Participating whole life policies pay dividends, which can be paid in cash, used to reduce premiums, left to accumulate at interest, or used to purchase paid-up additional insurance.

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Indeterminate premium whole life policies have adjustable premiums based on the company's current estimates of investment earnings, mortality, and expense costs. Economatic whole life policies provide a basic amount of participating whole life insurance with an additional supplemental coverage.

Limited payment whole life policies require only a limited number of premium payments, but the premium payments will be higher than under a whole life plan. Single premium whole life policies require only one large premium payment and are fully paid up with no further premiums required.

To choose a good permanent life insurance policy, research how much insurance you need, compare quotes and customer reviews, and make sure there's a knowledgeable customer service team ready to answer your questions.

Here are some key features to consider when choosing a permanent life insurance policy:

Senior life plans, also known as graded death benefit plans, provide eligible older applicants with minimal whole life coverage without a medical examination. These policies are usually more expensive than fully underwritten policies if the person qualifies as a standard risk.

Joint and Survivor life insurance options can be complex, but understanding the basics can help you make an informed decision.

Joint Life and Survivor Insurance provides coverage for two or more persons with the death benefit payable at the death of the last of the insureds. This means that the policy stays in force as long as at least one of the insureds is still alive.

Premiums for Joint Life and Survivor Insurance are significantly lower than for policies that insure only one person, since the probability of having to pay a death claim is lower. This can be a significant cost savings, especially for couples or families with multiple insured members.

Joint Life Insurance, on the other hand, provides coverage for two or more persons with the death benefit payable at the first death. This means that if one of the insureds passes away, the policy pays out the death benefit, and the other insureds are no longer covered.

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Here's a comparison of the two options:

Ultimately, the choice between Joint Life and Survivor Insurance and Joint Life Insurance depends on your individual circumstances and needs. It's essential to research and compare quotes, as well as check the financial security rating of the insurer, to ensure you're making an informed decision.

Pre-need insurance is a type of coverage designed to pay for burial expenses.

This coverage typically has a small face amount, often purchased to cover specific funeral costs.

Pre-need insurance often carries a higher premium per $1,000 of coverage compared to larger size policies.

This can be a good option for those who want to ensure they have funds set aside for their funeral expenses without breaking the bank.

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Home insurance is a crucial aspect of homeownership, and it's essential to understand what it covers and why you need it. Unlike auto insurance, no state law requires homeowners coverage, but lenders usually require it if you financed your home.

A standard home insurance policy typically includes several types of coverage, such as dwelling coverage, personal property coverage, other structures on the property, liability coverage, and additional living expenses. Dwelling coverage protects the structure of your house from unexpected events like fire, wind, theft, or vandalism, and should equal the cost of rebuilding your house.

Personal property coverage protects your belongings, such as furniture, appliances, and clothing, from problems like theft, fire, and explosions. This type of coverage is usually set at an amount between 50% and 70% of your dwelling coverage, and you can buy more coverage if you need it.

Liability coverage pays for injuries or property damage you accidentally cause to others, as well as your attorney fees if someone sues you. This coverage should equal your net worth or what could be taken from you in a lawsuit.

Home insurance policies don't cover damage from floods or earthquakes, but separate insurance is available for these problems. It's wise to buy a home insurance policy, even if you don't have a mortgage and paid for your home outright.

Here are the different types of home insurance coverage:

Remember, a standard home insurance policy provides a good level of protection, but it's essential to review your policy and adjust it according to your needs.

Other insurance policies can provide additional protection for your assets and loved ones. Consider purchasing riders, which are like add-ons to your regular homeowners insurance policy, to cover specific events like flood damage or earthquake damage.

Flood insurance, sewer backup/pipe coverage, and earthquake coverage are common riders that may be available to you. These riders can provide financial protection in the event of a disaster.

Here are some common types of insurance riders:

Other types of insurance include HO-8 policies, which are specifically designed for homes that don't meet the insurer's standards. These policies provide coverage against named perils, but the amount of coverage is based on the home's actual cash value, not its replacement cost.

For business owners, there are various types of insurance policies to consider, including those that provide financial protection against unforeseen accidents and calamities. Having the right policy can help your business recover faster.

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Long-term care insurance is another important type of coverage, especially for seniors who may need assistance with everyday tasks or extended stays at a nursing home. The cost of long-term care can be substantial, with an average monthly cost of $9,000 for a private room in a nursing home.

There are also different types of life insurance policies, including those that offer long-term care coverage as a rider or a combined policy. However, it's essential to research long-term care insurance thoroughly before purchasing it, as premium increases can be significant.

The main types of insurance policies typically cover valuable assets, such as homes, cars, health, and life. Here are some of the common types of insurance:

Riders provide additional coverage for specific events, like an add-on to your regular homeowners insurance policy.

Flood insurance, sewer backup/pipe coverage, other structures coverage, and earthquake coverage are common riders.

You can also get health insurance through your employer or by shopping for plans through the federal health insurance marketplace.

If you're unemployed, you can buy health insurance directly from health insurance companies or through a health insurance agent or broker.

Health insurance plans from the federal marketplace can provide subsidies if you meet income and eligibility requirements.

Typically, you can buy health insurance only during open enrollment periods specified by the health insurance companies selling them.

Exceptions to the open enrollment period are allowed under certain circumstances if you've had a recent life-changing event, such as getting married or having a baby.

Here are some common types of riders to consider:

Car insurance may be the most common type of insurance policy, as a minimum of auto liability coverage is required by law in most states.

Homeowners insurance protects against damage to your home and belongings from covered perils, like theft or hail.

Health insurance covers treatment for injuries, illnesses, and health conditions, often including preventative care like annual checkups.

Life insurance policies provide financial support to your beneficiaries, typically your family or loved ones, if you pass away while the policy is active.

Disability insurance is a crucial aspect of your financial plan that often gets overlooked. Most disabilities aren't work-related, with arthritis, cancer, diabetes, and back pain being among the most significant causes.

You might think you need disability insurance only if you have a job involving hazardous activities, but it's actually a vital protection for anyone. Disability insurance supplements a portion of your income if you become sick or disabled and can't work.

Typically, disability insurance replaces 40% to 70% of your base income and usually has a waiting period before coverage kicks in and a cap on how much it pays out monthly.

There are two main ways to get disability insurance: group disability insurance through work, and individual disability policies that you purchase on your own.

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Credit life insurance is usually sold on a group basis to a creditor, such as a bank or finance company.

The policy pays the outstanding balance of the debt at the time of the borrower's death, subject to policy maximums, which can be as high as $220,000 for a mortgage loan.

You don't have to purchase credit life insurance from the organization granting the loan.

The maximum amount of coverage for all other debts, such as personal loans or loans to buy appliances, is $55,000.

If you terminate coverage by prepaying or defaulting on the loan, you may be entitled to a partial refund of the premium you paid.

Credit life insurance can be a convenient option, especially if you don't have to provide detailed evidence of insurability.

You can even assign an existing life insurance policy to meet the creditor's requirement, but buying group credit life insurance may be a better option due to its availability and convenience.

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Juvenile insurance is a type of coverage that provides a minimum of protection, which might not be available at a later date.

The amounts provided under juvenile insurance are generally limited based on the age of the child, with certain age-related restrictions in place.

For minors under the age of 14.5, the limitation is the greater of $50,000 or 50% of the amount of life insurance in force upon the life of the applicant.

In contrast, for minors under the age of 4.5, the limitation is the greater of $50,000 or 25% of the amount of life insurance in force upon the life of the applicant.

Some juvenile insurance policies may be sold with a payor benefit rider, which provides for waiving future premiums on the child's policy in the event of the death of the person who pays the premium.

Business insurance is a crucial aspect of protecting your business from various risks and challenges. It's essential to consider the unique needs of your business and choose the right policies to safeguard your operations.

General liability insurance is a must-have for most businesses, as it covers claims of bodily injury and property damage resulting from your day-to-day operations. It also provides coverage for copyright infringement and reputational harm.

Some businesses may require professional liability insurance, which protects against claims of financial losses resulting from alleged or actual negligence during the fulfillment of a professional service. This type of insurance is mandatory for certain occupations and can benefit many others, including accountants, architects, and medical practitioners.

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Here are some essential types of business insurance policies to consider:

These policies can help protect your business from various risks, including property damage, liability claims, and cyber incidents. Remember to review your business needs and choose the right policies to ensure your operations are well-protected.

When choosing a term insurance policy, it's essential to consider the type of term that best suits your business needs. There are several options available, each with its own unique characteristics.

Renewable term plans give you the right to renew for another period when a term ends, regardless of your business's health. This is an important advantage, as it ensures you and your beneficiaries will have coverage even if your business's financial situation changes.

Convertible term policies permit you to exchange the policy for a permanent plan. You must exercise this option during the conversion period, and the premium rate you pay on conversion is usually based on your business's current age.

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Level or decreasing term policies are often sold as mortgage protection, with the amount of insurance decreasing as the balance of the mortgage decreases. If the insured dies, the proceeds of the policy can be used to pay off the mortgage.

Here are the main types of term insurance:

These options can help you find the right term insurance policy for your business, providing the necessary protection and peace of mind.

Commercial vehicle insurance is a must-have for businesses that use company cars and commercial trucks and vans. It's a type of business insurance that's similar to private auto insurance, but it covers vehicles used for business purposes.

Commercial vehicle insurance covers damage to company vehicles, as well as liability for accidents caused by business drivers. This can include property damage and injuries to others, which is why it's essential to have adequate coverage.

Some states allow businesses to purchase uninsured/underinsured motorist (UM) and underinsured motorist (UIM) coverage separately. This can provide additional protection for business drivers who may be involved in accidents with drivers who don't have adequate insurance.

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Businesses should also consider purchasing comprehensive and collision coverage for their company vehicles. This can help pay for damage to vehicles caused by floods, hail, fire, vandalism, falling objects, and animal strikes.

Here's a breakdown of what commercial vehicle insurance typically covers:

Your business faces unique risks and challenges that are different from other businesses. This means there's no single policy that can cater to every need.

Business insurance carriers provide a range of policies that can help protect your company. The selection is diverse and depends on factors like size, scope, and location.

There's no one-size-fits-all policy for every business. Your business insurance requirements will depend on your specific situation.

You can't just pick one policy and expect it to cover everything. The kind of coverage you need depends on several factors.

Business insurance carriers offer a variety of policies to choose from. You can check out a comprehensive guide to small business insurance to find out which types of business insurance startups and SMEs need.

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General liability insurance is a must-have for any business, providing financial protection against claims of bodily injury and property damage. It's also known as business liability or public liability insurance.

If your business sells or manufactures products, product liability coverage is a good idea, as it protects against lawsuits from customers claiming losses or injury due to your product.

General liability policies may also cover medical expenses for injuries that happen within your business premises, whether you're at fault or a lawsuit has been filed. Some policies even cover copyright infringement and reputational harm, including libel, slander, and invasion of privacy.

Here are some types of businesses that need general liability insurance:

Excess liability insurance is another type of coverage that protects your business from catastrophic claims and losses that exceed your coverage limits. This is especially important for small business owners, as it can help prevent bankruptcy.

Some businesses may require excess liability insurance as a condition for a lease or client contract. It's also sometimes referred to as commercial umbrella liability insurance.

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Commercial property insurance is a must-have for any business that owns a physical location. It helps minimize the financial impact of damage from natural and man-made disasters.

If your business operates in a commercial property, you're likely to have a lot invested in the space. Commercial property insurance covers the cost of repairing or replacing the property, as well as the equipment and inventory stored within.

This type of insurance is often bundled with general liability insurance in a business owner's policy (BOP), which is a form of small business insurance. Some BOPs also include business interruption coverage, which pays out a part of lost income if the damage keeps your business from conducting its usual operations.

Commercial property insurance can be a requirement in commercial leasing arrangements, so it's essential to have it in place. The policy provides compensation for damages and losses, helping to lessen the disruption of unexpected incidents to your daily operations.

Here are some key things to know about commercial property insurance:

Workers' compensation insurance protects your business from the financial liability of having to pay for costs resulting from job-related injuries and illnesses.

Almost all states in the US require businesses with a certain number of employees to take out this type of coverage. As a business owner, you are responsible for shouldering the entire cost of coverage.

You cannot require your employees to contribute to the premiums. Workers' compensation insurance follows a no-fault system, which means the benefit an employee receives is not impacted by their or your business' negligence.

Certain situations can lead to workers comp claims being denied.

Business interruption insurance is a type of policy that provides financial protection for businesses that suffer losses due to the disruption of their operations. This can be caused by an insured event such as a fire, flood, or other disaster.

Business interruption insurance pays out operating costs while your business is temporarily shut down, including potential revenue, employee salaries, business loan repayments, mortgage or rent on commercial space, and taxes.

Some business interruption policies also provide coverage for additional expenses related to the closure, such as setting up a temporary location or training staff to use new equipment. This type of coverage is sometimes included in a business owner's policy.

Business interruption insurance typically has a 48- to 72-hour waiting period to kick in, indicated in your policy's restoration period, which initially lasts for 30 days but can be extended for up to a year.

Here are some examples of business interruption costs that may be covered:

Monthly Debit Ordinary insurance can be a convenient option, but it's essential to understand its costs and limitations. This type of insurance has premiums payable monthly, which are often collected at your home, but in many cases, these collections don't happen, and you'll need to mail the premiums to the agent or company.

Smaller policies issued as debit insurance will have higher premiums per $1,000 of insurance compared to larger regular insurance policies. This is because certain expenses remain the same, regardless of policy size.

Debit insurance policies tend to have higher lapse rates compared to regular life insurance. This is a concern for insurance companies, as early lapses can be costly.

As a result, companies may pass these costs on to all debit policyholders, making the insurance more expensive. In many cases, higher commissions and fees are also paid on debit insurance, which are then passed on to the policyholder.

It's worth noting that debit insurance often comes with higher commissions and fees compared to regular insurance. This can make it more expensive for policyholders.

If you're considering debit insurance, it's a good idea to investigate regular life insurance as a cost-saving alternative.