Each year thousands of small businesses around the country are forced to close their doors, become insolvent or are forced into bankruptcy because they did not have the proper business insurance. How would your business fair if you or your business partner were to die; your business were sued for negligence; you lost a key employee or an employee is injured on the job? Let's face it without the proper business insurance your business might not remain yours for long. Business insurance comes in many forms. Listed below are some of the most common forms of business insurance.

Basic Business Insurance Coverages

Many insurance companies offer specialized business preservation plans for small companies, partnerships and professional practices whose business success can be jeopardized by the financial effects of an individual's disability.

• 
  

  Business Overhead Expense Coverage
  This coverage reimburses the business owner for day-to-day operating expenses in the event he or she is disabled and cannot run the business. Benefits of up to $20,000 per month are available.
  

• Business Buy-Out Coverage
  This coverage can prevent disruption of a business when a disability or death forces the buy-out of a partner's share. This product provides the reimbursement mechanism to accomplish the transaction smoothly.
  
• Business Key Person Coverage
  This coverage covers the income lost when an employee central to the success of a business becomes disabled and cannot work. Key Person coverage also reimburses the business for expenses related to hiring a replacement for the disabled employee.
  
• Workman's Compensation Insurance
  This is a type of insurance that comes into play when an employee is injured on the job or when performing official business duties. Usually, this insurance pays money to the injured party instead of you being sued for damages. In some jurisdictions, this type of insurance is required. Even if not required, it is usually considered a wise insurance purchase.
  
• Umbrella Liability Coverage
  This policy is designed to cover catastrophic situations where a legal award could exceed the limits of you primary liability insurance. This policy also included coverage if you are sued for false imprisonment, wrongful eviction, libel, slander, defamation of character or invasion of privacy.
  
• Group Health Insurance
  The group market is the health insurance market under which individuals obtain health insurance coverage (directly or through any arrangement) on behalf of themselves and their dependents through a group health plan maintained by an employer, a union, or both.