Purchasing comprehensive business insurance will help an entrepreneur incorporating in Texas by protecting the company from injury lawsuits, accidents and natural disasters.
No one wants to pay more than they have to for insurance, but Jacqueline Taylor, a business consultant for the University of Houston, says that not having adequate coverage can put a company at financial risk.
"Although the type of coverage you need will vary depending on the kind of business you''re in and how it is structured, a small business typically needs liability, business continuity, property and automobile insurance," Taylor writes in the Houston Chronicle.
Business liability protects a company from injury claims or accidents that occur on the premises, or from property damage arising out of actions by the business or employees. It does not, however, cover lawsuits because of poor performance or failure to meet the terms of a contract.
Any vehicle used for business, even if it is the owner''s personal automobile, requires a separate business auto insurance policy. Business continuity coverage provides lost revenue in the event an unforeseen circumstance disrupts business operations.
However, every policy has a limit, and some disasters, such as hurricanes, floods or even oil spills may be excluded from coverage.
Tags : az, c corp, ca, llc, lp, ny, operations, s corp, small business management, tx
Posted: Aug 31st, 2010