Types of Insurance Policies for a Business
Insurance policies for businesses can be group benefits for employees, which can include health, dental and vision insurance, or life insurance for the company. Compare various types of insurance plans for a business with information from a representative in this free video on insurance.
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This is John Pinelli, financial representative, talking to you today about types of insurance policies for a business. Business can look into a ton of different insurance policies. Typically, when were talking about insurance for businesses we're talking about group benefits for employees of businesses, so this could be things like health insurance, dental, vision all the way up to disability, and sometimes even life insurance and long term care insurance. Now, when these benefits are provided to employees employers or businesses are able to offer them to their employees at a discounted rate. Within the business everyone is bundled into a group when looking at group insurance, so you've got some people that may be older and less healthy bundled with some people who are younger and more healthy; all put into this pool and given an average price which typically would be lower than if the average person were to seek out health insurance on their own; thus the advantage of having the group. Other types of business policies that business owners might look into would be a life insurance policy if there were multiple business owners, where this would result in a buy/sell agreement. So, you've got business owner A and business owner B; each each has their own family, wife and kids. Now, if business owner A dies what happens is his share of the business is transferred to his wife and kids. Now, if they don't want to continue to run the business, they want to sell, this could create quite a dilemma for business owner B who still wants to continue to run the business. So, they would look into life insurance which would fund a buy/sell. Now, what I mean by that is business owner A died. Now, what would happen is a certain amount of money would go to business owner B for business owner A's half of the company, and then business owner B would be able to pay off the wife and kids of business owner A so that they would have, essentially, the value of the business; where business owner B would be able to continue to run the business and have full control over the business now, because he will have bought out the beneficiaries which was business owner A's wife and kids. Also, business owners might want to look into umbrella policies to protect them from liabilities; things like lawsuits, people becoming injured on their property. Those such instances which could create quite a financial burden for them. So, they'd want to look into obtaining some affordable coverage to protect them in the event of something catastrophic happening there.