If you run a small business, you need insurance. There are various types of coverage available and the exact insurance you need will depend on your industry and precise circumstances.
However, some insurance policies are vital for every type of small business. Here are some of the most common types of insurance policies that small businesses could require.
General Liability Insurance
If someone makes a claim against your business because he or she has suffered a bodily injury while on your premises, such as slipping in a store, general liability insurance will protect you and help to pay for things like medical expenses. General liability insurance covers property damage too.
Also, if your business sells products, you should get general liability insurance that includes product liability insurance to help protect your business against property damage or injuries caused by the products you sell.
Professional Liability Insurance
Professional liability insurance protects your business against claims related to mistakes in your professional services.
For example, if a customer has to pay a penalty due to an accounting mistake that your business made, the person could sue your company.
By having professional liability insurance in place, legal costs for such lawsuits will be covered.
Cyber Liability Insurance
In today’s world, most businesses, both big and small, have some kind of digital infrastructure. While the digital world has enabled operations to become more efficient and productive in numerous ways, the drawback is your company can potentially be a victim of cybercrime.
Therefore, you should consider getting a business insurance policy known as cyber liability insurance. It can cover your business in the event of things like data breaches and theft or loss of customer data.
Commercial Property Insurance
Whether you own or rent a building, you should take out commercial property insurance. It covers the building and the equipment in the building should a thief break in and steal items.
So, if laptops are stolen, for example, commercial property insurance can help to cover the replacement cost.
Workers’ Compensation Insurance
Most states in the US require businesses to have workers’ compensation insurance. It provides employees with benefits to cover things like medical treatment should they experience work-related injuries or illnesses.
Employment Practices Liability Insurance
Also known as employers’ liability insurance, employment practices liability insurance helps to protect your small business from employment-related claims. That includes claims like sexual harassment, discrimination, and wrongful termination.
Business Income Coverage
When your small business cannot operate due to property damage, you can help to replace your loss of income when you have business income coverage.
Also known as business interruption insurance, the coverage protects your loss of income when your property has been damaged by things like a fire, a storm, or theft.
Business Owner’s Policy
If you are planning on getting business income insurance in addition to general liability insurance and commercial property insurance, you should go with the umbrella business owner’s policy, which covers all three types of insurance policies.
Commercial Auto Insurance
Should you or an employee be involved in an accident that causes injuries or property damage while driving a company vehicle, damages can be paid for when you have commercial auto insurance in place.
That means you or the employee can gain financial compensation for things like repairing property and getting medical treatment.
Personal Accident Insurance
If you should experience an injury or illness that stops you from performing your regular work duties, your loss of income can be covered when you have a personal accident insurance policy.
As a small business owner, it makes sense to have personal accident insurance should the unexpected occur.
