Open for businessYour small business needs insurance to protect your assets, both physical and financial. Insurance industry jargon is confusing. As you shop for a business insurance policy, you will see many new terms. Here are seven that are useful to know:

1. Primary Policy - This is the first policy that covers an incident. In the event that there are secondary policies, use the first policy until it reaches its limits.

2. General Liability Insurance - This policy usually covers property damage and injury to third parties. Should a client slip and fall at your office, this policy should cover the associated costs. It also covers you if you are on a client's property and break something.

3. Business Owner Insurance - This policy will cover the items and equipment that you need to complete your work. For plumbers, this would include your tools that are necessary to complete your work. Business owner insurance often includes business interruption insurance as part of the policy. You will get money that's approximate to what you lose out on when your business stops due to a claimable event.

4. Endorsement - An endorsement modifies a policy's terms and conditions. If the standard policy doesn't meet your needs you can add it.

5. Deductible - This term refers to the amount of money that you pay out of pocket before your insurance picks up the costs. Let's say someone breaks into your office and steals your electronics. The cost to replace them is $5,000, but you have a $2,000 deductible. This means you will pay $2,000 before the insurance company pays the remaining $3,000. When the deductible is higher, the cost of coverage is usually lower.

6. Certificate of Insurance - This is proof that you have business insurance. It is also called a cert sometimes. It lists information like the type of insurance, name of the insured, limits, deductible, the issuer, and the dates for which the policy is effective.

Knowing what these terms mean will help you better understand business insurance policies. Remember, you can always ask you Atlanta insurance agent for further clarification as well.

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