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Any type of business needs the protection of insurance to secure it against various hazards. Business by its very nature is a financially risky proposition, thus needs to be safeguarded for growth and profitability. An Internet or online business is very different from traditional brick and mortar business as it has no solid spatial structure and does not have customer footfalls.Internet Businesses:
Most Internet businesses are home based or run from specially rented or owned space. The equipment required is minimal. The whole thing is based around the computers. With the ever-changing technology, even the big, bulky computers have been converted into sleek, portable, technically advanced laptops. Homeowners’ insurance may cover basic business equipment such as personal computer, laptop and related computer equipment.
Once the primary or major business component is taken care of against loss or physical damages, there arises the need to protect the Internet business with some type of specific insurance policy. Some of the most common types of insurance policies for businesses include property insurance, liability insurance, malpractice insurance, worker’s compensation insurance and prepaid legal insurance. The other type of insurances includes health, dental, vision or life insurance covers for business owners and employees. On analyzing your business type, situation and knowledge of various types of insurance cover, you can determine the type of business insurance best suited to your Internet business.
Property Insurance:
Property insurance cover is necessary if you lease or finance business property for running the Internet business. If the business is run from home with minimal equipment, then homeowner’s policy will take care of that. If your home office business equipment is expensive, it may be insured against damage or theft. If the equipment is minimal then to purchase a policy to specifically cover it may prove to be a poor financial policy, as you will end up paying higher insurance premiums.
Liability Insurance:
Liability can arise in any business. Liability insurance takes care of the risk arising from any product or service offering provided to customers. You may decide to purchase this insurance depending on the element of risk inherent in your offering.
Workers’ Compensation Insurance:
This is required for most businesses that have employees on their rolls. The requirements vary in different states depending on the number of employees. The insurance pays for workers’ medical expenses and lost wages if the injury is sustained on the job.
Malpractice Insurance:
Also known as professional liability insurance, it is required by firms providing professional services that require licensing. These include services like counseling, medical services, architectural services, etc.
Prepaid Legal Insurance:
This type of insurance covers legal expenses such as attorney and retainer fees and can be quite useful for certain types of businesses.
Internet businesses are a comparatively recent phenomenon. Owners should take advantage of the insurance coverage provided by various plans. Do also purchase insurance for aspects that are mandated by la
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