Every Small Business Owner Should Consider 13 Types of Insurance

Every Small Business Owner Should Consider 13 Types of Insurance

Property Insurance

In the event of a natural disaster, theft, or other damages, property insurance will protect any property the business owns.

Every Small Business Owner Should Consider 13 Types of Insurance

Apart from buildings, this includes office supplies, computers, electronic equipment, inventory, tools, etc. It would be wise to also consider business interruption/loss of earning insurance. This will protect your profits in the event that the business is unable to operate due to damages.

General Liability Insurance

This is the most important type of insurance for small businesses, even if they are home-based. Liability insurance protects against bodily injury or property damage to a third party that is caused by you, your employees, or your products or services.

Worker’s Compensation

When an employee is injured while performing his or her job, worker’s compensation offers medical benefits and wage replacements in exchange for the employee waiving his or her right to sue the company. This keeps the business owner safe from the grasp of legal difficulties. Many state laws require business owners to have worker’s compensation for W2 employees.

Professional Liability Insurance

Also known as Errors and Omissions Insurance, this policy protects your business in the event of incorrectly rendering professional services. Professional liability insurance, distinctly different from general liability insurance, is relevant for any professional firm including, but not limited to, engineers, lawyers, and technology providers.

Commercial Auto Insurance

This type of insurance applies to company cars, SUVs, vans, and trucks that transport employees, products, or equipment. You can also purchase non-owned auto liability for employees who drive their own cars on company business. This is important to protect your company if employees lack personal coverage.

Business Owner’s Policy (BOP)

This is a bundle of several types of insurance designed to provide comprehensive coverage to small businesses. Some commonly included policies are property insurance, liability insurance, business interruption insurance, vehicle coverage, and crime insurance. BOPs can be customized based on the needs of your business and often save business owners money by buying all of these products from one provider.

Data Breach

Businesses are responsible for keeping sensitive information from falling into third-party hands. Whether this information involves employees or clients, if a breach occurs electronically or if paper files are leaked, this type of policy offers protection against that loss.

Directors and Officers Insurance

If a director or officer within your company winds up in a legal situation as a direct result of his or her actions on the job (namely, actions that affect the operations or profits of the company), this type of policy covers costs and damages resulting from a lawsuit.

Life Insurance

This is a personal policy that a business owner can purchase to prevent his or her family from facing financial burden in the event of his or her death. With this policy, the provider pays a predetermined sum to the beneficiary upon the insured’s death.

Personal Auto Insurance

Along with your business vehicles, it’s important to purchase coverage for your own personal vehicle as well, whether that be a car, truck, or motorcycle. This type of insurance serves a dual purpose, protecting against both damage to the vehicle and bodily injury in the event of an accident.

Homeowner’s Insurance

This is one of the most popular types of insurance people purchase. Homeowner’s insurance protects against both damages to your home and damages to the possessions within your home.

Renter’s Insurance

This is similar to homeowner’s insurance, but is offered to people who rent their home. Renter’s insurance protects against damage to the home, possessions within the home, and bodily injury that takes place inside the home.

Personal Umbrella Insurance

This type of policy will add supplementary coverage on top of the policies you already have. Personal umbrella insurance is typically sold in increments of $1 million and can be used to fill in any gaps within your other policies, including home and auto.

By Brooklyn Corey

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