Starting a business is an exciting time, but it can also be risky. That's why it's important to choose the right types of insurance policies to keep your company safe from the potential costs of claims, damages, and lawsuits. Here's a roundup of important small business insurance policies:
## Business Liability Insurance
General liability insurance protects a small business from claims of property damage and bodily injury. As a small business owner, you may be legally responsible if a person’s property gets damaged while visiting your business, company or store. And if your business is responsible for someone’s injuries (not including an employee’s injuries), general liability insurance would pay for their medical bills and lost wages too. Other claims handled by general liability insurance include reputational harm, advertising injury and copyright infringement. With the help of a business liability insurance policy, your small business will be able to maintain financial stability if you should get sued by a customer or other business. A general liability policy also pays for your legal costs, along with settlements and judgments. Financial lenders, landlords, licensing boards and business clients often require general liability insurance before doing business.
## Commercial Property Insurance
A commercial property insurance policy protects the physical location of your small business and your business equipment, computers, and office furniture. Owned and leased business equipment are both covered by this policy. It takes a lot to make a small business go and there is a lot covered with a commercial property insurance policy. Tools, inventory, supplies, valuable papers, and business records are all covered. Commercial property insurance also covers outdoor fixtures such as signs and fences. A commercial property insurance policy typically applies to any loss to your small business property due to perils such as lightning, wind, hail, and fire.
## Business Interruption Insurance
Business interruption insurance is designed to protect your business from financial losses that occur when your business is unable to operate due to a covered peril. This type of insurance can help you pay for expenses like rent, payroll, and taxes while your business is closed. Business interruption insurance can also help you recover lost profits and pay for expenses associated with relocating your business.
## A Business Owners Policy
A business owners policy (BOP) is a package policy that combines general liability insurance and commercial property insurance. This type of policy is designed for small businesses that need both types of coverage. A BOP can also include business interruption insurance and other types of coverage.
## Commercial Auto Insurance
Commercial auto insurance is designed to protect your business from financial losses that occur when your business-owned vehicles are involved in an accident. This type of insurance can help you pay for damages to your vehicles, as well as damages to other people's property and injuries to other people.
## Cyber Liability Insurance
Cyber liability insurance is designed to protect your business from financial losses that occur as a result of a data breach or other cyber attack. This type of insurance can help you pay for expenses like legal fees, public relations, and credit monitoring for affected customers.
## Errors and Omissions Insurance
Errors and omissions insurance (E&O) is designed to protect your business from financial losses that occur as a result of a mistake or oversight made by you or one of your employees. This type of insurance can help you pay for legal fees and damages awarded in a lawsuit.
## Technology Errors and Omissions Coverage
Technology errors and omissions (Tech E&O) coverage is designed to protect your business from financial losses that occur as a result of a mistake or oversight made by you or one of your employees in the course of providing technology services or products. This type of insurance can help you pay for legal fees and damages awarded in a lawsuit.
## Commercial Umbrella Insurance
Commercial umbrella insurance is designed to provide additional liability coverage beyond the limits of your other liability policies. This type of insurance can help you pay for damages awarded in a lawsuit that exceed the limits of your other policies.
## Workers Compensation Insurance
Workers compensation insurance is designed to protect your business from financial losses that occur as a result of an employee's work-related injury or illness. This type of insurance can help you pay for medical expenses, lost wages, and other expenses associated with an employee's injury or illness.
## Other Types of Small Business Insurance
There are many other types of small business insurance policies available, including:
- Employment Practices Liability Insurance (EPLI)
- Directors and Officers Liability Insurance (D&O)
- Fidelity Bonds
- Key Person Insurance
- Product Liability Insurance
- Professional Liability Insurance (Errors and Omissions Insurance)
- Surety Bonds
Each of these policies is designed to protect your business from different types of risks. It's important to work with an insurance professional to determine which types of insurance policies are right for your business.
I hope this article helps you understand the different types of business insurance policies available and how they can help protect your business. If you have any questions or need further assistance, please don't hesitate to ask!
Source:
(1) 13 Types Of Small Business Insurance – Forbes Advisor. .
(2) What Is Commercial Insurance? - Investopedia.
(3) Types of Business Insurance Plans: How to Decide Which ... - Investopedia.
(4) Types of Business Insurance: What Coverage Do You Need?