What Insurance Does a Small Business Need?

What Insurance Does a Small Business Need?

If you are wondering if you need business insurance for your small business, then the answer is yes. You will need an insurance policy to protect your business from different risks. Here are some of the types of insurance that a small business might need. Depending on the industry of your business, some types of insurance might not be applicable to your business.

General Liability Insurance

General Liability Insurance can help protect your business in case of any injury that will happen inside your store. For example, if someone slips in your store, this will help cover any medical expenses needed. This can also cover claims of libel and slander.

Product Liability Insurance

Product liability insurance protects their company from claims of injury or property damage that their defective product causes. This is usually included or part of the general liability insurance. 

This type of insurance is important for manufacturers, distributors or retailers who are selling physical products. For example, if your company accidentally sells a defective power tool that injured the customer, that customer might sue your company. The product liability insurance will help you cover the medical costs to treat the injury, legal fees to defend your business and other settlement fees.

Professional Liability Insurance

This coverage is also known as errors and omissions insurance. This will help cover claims related to the mistakes in the professional services of your company. For example, if your company provides financial advice that resulted in loss of money, the client might sue your company. Professional liability insurance can help cover the penalties or legal costs.

Commercial Property Insurance

Commercial property insurance will protect your business against loss of and damage of property due to fire, storms, and vandalism. If someone steals the items inside your business, this will also cover the replacement costs.

Workers’ Compensation Insurance

Workers compensation insurance provides benefits to your employees in the event that they acquire any work-related injury or illness. Examples of benefits that your employee will get are medical care, disability benefit, funeral expense and lost wages if your employee needs time off to recover.

For example, if your employee develops carpal tunnel syndrome from poor ergonomics at work, this insurance will help cover the treatment costs.

Commercial Auto Insurance

Commercial auto insurance is suitable for businesses that have employees who drive company-owned or leased vehicles while at work. For example, if your employee gets involved in a car accident using a company-owned delivery truck, this insurance will help pay for the damages.

Business Owner’s Policy

Business Owner’s Policy is a combination of general liability insurance, commercial property insurance and business income insurance. This is the most popular type of insurance and simplifies the buying process for the business owner. This policy is a good insurance to have especially for small business owners. You will be surprised that this policy will save you money because it is a bundle of different types of insurance.

Data Breach Insurance

Most businesses store important customer information. As a business owner, you have to protect these personal data. However, if a hacker gets this information, you might need data breach insurance to help cover credit monitoring services to data breach victims or run a public relations campaign to improve your business reputation.

Commercial Umbrella Insurance

If a claim exceeds your insurance limit, commercial umbrella insurance can help cover the difference. This provides an added coverage when you need it the most.

No two businesses are the same, so it’s important to speak to qualified Business Insurance professionals like us, who can sift through your various personalized business’s needs. 

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