There are many types of Asset protection insurance out there. The most simple protect your company's building and contents, similarly to a homeowner's policy. There are also coverages available for specific types of businesses. For example, restaurant owners can insure their perishable supplies, so in case of a power failure they would be compensated for lost inventory.
If your company posesses any automobiles that are used solely for work related trips it is important to fully protect them. An accident with an improper vehicle insurance can negatively affect you company; thus, by insuring your car with the right coverage, you can protect your business assets. Any business must process a minimum coverage of $300,000/$100,000. In this case if an accident does occur, the insurance provider would pay up to $100,000 for every person injured up to a total limit of $300,000 for the accident. Hence, this form of coverage would surely allow you to settle to all injured parties without future losses on your assets.
Liability insurance is a kind of insurance that protects a business from lawsuits that involves the person being responsible due to negligence. For example, if a client slips and injures himself in your store due to a puddle of water, liability insurance would provide coverage in this situation by paying medical expenses and preventing an expensive lawsuit. Liability insurance, also, provides coverage for your business on site as well. For example, you own a manufacturing company and one of your workers, while working on the roof, accidentally drops a hammer on the homeowner's car, the insurance company would pay the owner of the vehicle for the damages.
Key Man insurance policy is purchased to protect a company from the loss of a top executive whom the company could not survive without if this executive suddenly died or was disabled, hence the name Key Man. This life and/or disability insurance would provide a financial cushion to maintain the company running while a replacement is found or it is decided to liquidate the company. The amount of insurance you arrange should cover the everyday business expenses, payroll and cost of your mortgage payment while the company is in this critical transition period.
In the end, it is vital to try to figure out everything that could result in a significant loss to your business and ensure that you reduce such losses by buying the proper types of insurance to protect your business from expensive and lengthy lawsuits that could arise otherwise.