Small business owners often need various types of insurance coverage to protect their operations, assets, and employees. Here are some common types of small business insurance:
What Types of Insurance Does a Small Business Owner Need?
Types of Small Business InsuranceIf you’re asking yourself “do I need insurance for my small business?” the answer is yes. Every business owner needs small business insurance to help protect their company from risk. But how do you choose the right coverages? At minimum, you should start with these types of small business insurance:
- General liability coverage
- Workers’ compensation coverage
- Commercial auto coverage
You’ll also want to think about what you use to keep your business running, like tools and equipment. Certain coverages can help protect these belongings. To learn more, call our specialists at 855-829-1683. They’ll help walk you through the right coverages and limits for your company.
Basic Business Insurance Needed for Small Business
Business Insurance for Small BusinessThe average customer injury or property damage claim is $30,000.1 That’s why a Business Owner’s Policy (BOP) is helpful for many companies.
This policy combines business property and business liability insurance into one. We can then help you customize it to fill in any gaps that your BOP doesn’t cover. You can count on us to make sure you’re prepared for accidents, liability lawsuits and damaging weather that comes your way.
General Liability Insurance
General liability insurance can help protect your business from claims of bodily injury or property damage. They can also help cover tortfeasor claims such as libel and slander.
For example, if a customer slips and falls while shopping in your store, this coverage can help pay for their medical bills. Without it, you’ll have to pay these costs out of pocket.
Commercial Property Insurance
Commercial property insurance helps protect your business’ physical location and other property, like your:
Business Income Insurance
Business income insurance helps replace lost income from fire, wind damage, theft and other covered losses. So, if you have to temporarily shut-down your restaurant due to a fire, this coverage can help pay your lost revenue.
Workers’ Compensation Insurance
Workers’ compensation insurance helps provide benefits to your employees if they have a work-related injury or illness. This coverage helps pay for:
- Medical care
- Lost wages if your employees need time off to recover
- Disability benefits
- Funeral expenses
So, if your employee lifts too many heavy boxes and gets tendonitis, this coverage can help pay for their medical treatment.
Commercial Auto Insurance
What Type of Insurance Does a Small Business NeedIf you have employees that drive for your business, you’ll want commercial auto insurance. This policy helps cover accidents if you or your employees are at-fault. For example, if your worker is using your company’s van for deliveries and accidently hits a customer’s car while leaving your business, this coverage can help pay for the damages.
This insurance is especially important if your business:
- Has workers that drive leased, rented or owned company vehicles
- Owns, leases or rents vehicles
- Has employees that drive their own cars for their job
- Professional Liability Insurance
If you or your employees make a mistake in the professional services you provide, professional liability insurance can help protect your finances. This coverage is also known as errors and omissions insurance.
For example, if your employee gives a client financial advice that causes them to lose money instead of gaining it, your customer may sue you for negligence. This coverage can help pay your legal fees.
Data Breach Insurance
Most small businesses store important personal information for their customers and clients. To help keep it safe from hackers, you’ll need data breach insurance. For example, if your computer gets a virus that steals important customer information, this coverage can help pay to:
- Notify impacted customers, patients or employees
- Hire a public relations firm
- Offer credit monitoring services to data breach victims
Do I Need Liability Insurance for My Small Business?
Every small business faces certain hazards and risks. To help protect your business, you’ll need to get the right liability insurance for small business, including:
- General liability insurance for small business
- Professional liability insurance
- Employment practices liability insurance
- Management liability insurance
- Cyber liability insurance
- Benefits of Packaging Different Types of Small Business Insurance
We can help you save money on business insurance costs by offering a packaged policy. For example, you can bundle these three insurance coverages into one with our Business Owners’ Policy (BOP):
- General liability insurance
- Business income insurance
- Commercial property insurance
We also offer packaged policies for various industries. For example, if you want comprehensive coverage for your dental practice, we offer dental office insurance.
What Is a Small Business Owner’s Policy (BOP)?
Packaged policies, like a BOP allow you to protect your business from:
- Property damage
- Lost income
- Liability claims
This policy gives small business owners a good start toward protecting the business they’ve worked so hard to build. The cost of insurance for a startup business will vary depending on a few factors.
The specific types of insurance a small business needs depend on its industry, size, and the nature of its operations. Business owners should assess their risks and work with insurance professionals to tailor coverage to their unique needs.