Getting the Right Business Insurance

Business insurance is a general term that applies to providing protection against loss by a business.
- Borg Agency / Kirk Borg, September 12th, 2012

Published September 12th, 2012

Getting the Right Business Insurance

Getting the Right Business Insurance
By Kirk Borg
Business insurance is a general term that applies to providing protection against loss by a business.  While the specifics of a business are essential to determining the types and amount of coverage your business may need, here are common types to consider.
Common Coverage Types
General Liability Insurance:
This insurance protects a business against liability claims, negligence, bodily injury, manufacturing or personnel error, or even property damage.  This coverage often includes legal fees if the liability or event is covered under the policy.

Key Person Insurance:
A Key Person is someone who is considered so important to the company that loss of the person could result in essential damage to the company’s financial future.  This can include death or disability of the Key Person.  Note that the remaining partners or owners may use the benefits for legitimate business expenses only, such as buying the Key Person’s share in the business or hiring and training expenses for a replacement.  Key Person Insurance is sometimes called a Buy/Sell Agreement.

Product Liability:
This coverage protects against faulty products and damage, injury, or death from use of the faulty product.

Professional Liability:
Certain professions need what is termed errors and omissions insurance to cover negligent acts, whether a mistake has been made or not.  Engineers and other licensed professionals fall into this category.
Actuary tables based on historical data and anticipated risks are used to determine rates.  Also, the experience of the company (and key people), normal operational hazards and location may contribute to rate calculation.
The ability to recover from a catastrophic event or law suit requires that proper insurance be in place to ensure continuity of the business.  Since the specifics of each business and its exposure to risk vary greatly, be sure to consult an experienced agent to discuss your needs.
Kirk Borg is a licensed insurance agent with the Borg Agency.  He specializes in educating his clients on how to use insurance for personal and business security and asset protection.  He can be reached at 623.561.0445 or by email at

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