Owning and operating a business is just as painstaking a process as starting the business itself— and that’s something they don’t prepare you for! There’s no way to accurately predict how business will go, and that’s the very reason why there are so many different types of insurance out there to help support small business owners like yourself.
Designed to give you the peace of mind you need in the event of an untimely emergency or accident, business insurance is a means of protection against monetary loss. In essence, these 10 types of insurance are individual forms of risk management than can safeguard you and your growing business from falling into serious financial jeopardy.
1. General Liability Insurance
General liability insurance is designed to protect your business from accidents that cause bodily injury. Let’s use a real life example: if a customer falls inside of your store and ends up breaking a bone, general liability insurance can help cover the medical costs and attorney fees that may come if you are found legally responsible for the accident.
Most general liability insurance policies will cover you and your small business for claims involving bodily injuries and property damage resulting from your products, services, or company operations. You may also be covered if you are found liable for damages to your landlord’s property.
2. Property Insurance
Property insurance is a top priority for business owners who rent or own their building. It covers damage to everything from inventory and equipment to signage and furniture from fire, storm, or theft. Unfortunately, property insurance does not cover damage incurred by earthquakes or floods. Coverage for these natural disasters fall under different insurance policies.
3. Product Liability Insurance
Companies that manufacture products have to ensure they have purchased the product liability insurance with coverage tailor-made for specific types of products. This is because lawsuits can often be filed against the owner or company for damages caused by one of its products, even if every measure is taken to ensure safety of the product. PLI covers such claims and costs incurred by faulty products.
4. Worker’s Compensation Insurance
Workers Compensation Insurance is designed to cover medical and disability treatment and death benefits if any of the latter are required as a result of an on-the-clock accident. This includes everything from serious falls to the minute development of carpal tunnel syndrome. These accidents can result in massively expensive claims, so it’s always best to be prepared with the proper coverage should anything happen during business operations.
5. Commercial Auto Insurance
Commercial auto insurance helps cover financial costs that are the direct result of a vehicle accident. For example, if one of your employees is in a car accident and is found at fault, commercial auto insurance can help cover the associated costs. There are plenty of casualty insurance software out there that can expedite the process, but it’s always a smart idea to get the coverage you need before you really need it.
6. Business Owner’s Policy
A business owner’s policy is a customizable policy that includes a number of different insurance a business owner needs. This includes the following:
Business interruption insurance
Tailor your perfect business owner’s policy to your specific business needs while scoring a better package deal than individually signing up for separate policies.
7. Commercial Property Insurance
Commercial property insurance provides coverage for your business’ physical property. For example, if a fire burns through your inventory and damages your company computers, commercial property insurance can help cover the associated costs.
8. Business Income Insurance
Business income insurance is designed to help business owners replace the lost income incurred if your business can not operate due to an already covered loss. This could be because of storm, water, or fire damage.
9. Data Breach Insurance
More today than ever, businesses depend on web connection to keep their business operations afloat. Whether it’s managing your payroll or backing up important client contracts, you’ll want to ensure all of your sensitive data is protected against any third-party hackers. In the event that a cybercriminal gains access into your confidential digital data, you’ll want to be protected. Data breach insurance safeguards your servers, files, and documents from costly damages incurred due to a sudden data breach.