Insure U Helps Small Business Owners Understand Insurance Options (NAPSA)—Small businesses are a major engine of the U.S. economy. To protect the assets and employees of these vital compa- nies, their owners need to stay abreast of potential business risks and understand insurance options available to address them. Information, tips and considerations about small business insurance are available from the National Association of Insurance Commissioners (NAIC), a volun- tary organization of state insurance regulatory officials. The NAIC’s Insure U for Small Business Web site, www.Insure Uonline.org/smallbusiness, covers six categories of insurance: workers’ compensation; business property andliability; commercial auto; group health and disability; group life and key person life; and home-based business. Small Business Tips: Workers’ Compensation Insurance, required by most states, protects a business ownerfrom claims by employees who experience a workrelated injury or illness. To minimize risk in the workplace, keep office space in good physical condition. Maintain carpeting and railings on stairs. Makesuretelephone and computer wiring is in good working condition and does not create any hazards. Business Property Insurance protects an owner from dam- ages and losses to a business’ physical space or equipment. Don’t rely on your landlord to provide coverage for your business property if you lease youroffice or building. The building’s insurance will typically cover only the basic structure and commonareas. Commercial Auto Insurance typically has higher liability limits than personal auto insurance. If you are relying on your personal auto insurance or personal umbrella liability policy to provide you with protection for your company’s use of vehicles, look closely at the provisions, as business-related liability may be excluded. Group Health Insurance: Before purchasing a group health insurance policy, survey your employees to find out what kind of coverage is particularly important to them. Contact your state insurance department to see whether there are any special programsdesigned to assist small business owners in providing health insurance. e Key Person Life Insurance: Many small firms purchase Key Person life insurance to provide financial protection in the event a vital employee dies. The payout can help the company continue operations until a new individual is hired, or buy out the key person’s heirs if ownership rights are involved. Home-Based Business Insurance: Don’t assume your homeownersor renters insurance policy will cover your home-based busi- ness. Most homeowners insurance policies significantly limit coverage of business property and may totally exclude business-related liability. For more information, visit www.InsureUonline.org/small business.
