If you own a small business, you’re no stranger to risk. There’s the risk of financial setbacks, the risk of lawsuits, and the risk of natural disasters, to name a few. But there’s one way to protect your business from large and small risks: small business insurance.
Business insurance is a type of insurance designed to protect businesses from financial losses from accidents, fires, theft, and more. Protecting your business with an insurance policy can minimize the impact of a costly setback and keep your doors open for business.
But with so many different types of coverage available from the best small business insurance companies, it can be hard to know which policy is right for your business. So to help you make the best decision for your company, we’ve compiled a list of seven different types of coverage you may need for your small business.
Seven Different Types of Small Business Insurance Coverage
- Property Insurance:
Property insurance covers the physical buildings and contents owned by your business in the event of damage or loss due to fire, severe weather, theft, or other covered perils. This type of coverage can help you repair or replace damaged property so you can get back to business as usual.
- Liability Insurance:
Liability insurance protects your business against third-party claims arising from bodily injury or property damage caused by your business operations. This coverage can help you pay for medical expenses, legal fees, and settlements or judgments if your business is sued.
- Professional Liability Insurance:
Professional liability insurance (also known as errors and omissions insurance) protects your business against third-party claims alleging negligent advice, errors in the performance of professional services, or failing to perform professional services as agreed in a contract. This coverage can help you pay for legal fees and settlements or judgments if your business is sued.
- Product Liability Insurance:
Product liability insurance protects your business against third-party claims alleging that a product manufactured or sold by your business caused bodily injury or property damage. In addition, if your company is sued, this coverage may assist you in covering the costs of medical care, court costs, and settlements or awards.
- Commercial Auto Insurance:
Commercial auto insurance covers vehicles your business owns for liability arising from vehicle accidents. This type of coverage can help you pay for medical expenses, legal fees, and settlements or judgments if someone is injured in an accident involving a vehicle owned by your business.
- Workers’ Compensation Insurance:
Workers’ compensation insurance covers medical expenses and lost wages incurred by employees who are injured on the job. In most states, this type of coverage is mandated by law for businesses that employ workers.
- Business Interruption Insurance:
Business interruption insurance compensates businesses for lost income due to interruptions in operations caused by covered perils such as fires or severe weather conditions. This type of coverage can help keep your doors open for business following a covered interruption so you can get back on track as soon as possible.
When it comes to protecting your small business from financial loss due to risks large and small, having the right commercial insurance policy in place is crucial. By understanding the different types of coverage available from small business insurers, you can find the policy that best meets your company’s needs. Then, shop around and compare policies from different insurers to find the best fit for your budget and business.