Small Business Insurance

Different businesses require different insurance policies. Having the right insurance policy can protect your business from claims that could put your business out of business. The right coverage protects your company and assets. Below are the most common kinds of insurance for small businesses.

General liability insurance protects your business against claims made by others including bodily injury, damage to property, or personal injury. General liability can cover medical costs, damage to someone else’s property, and damage to someone’s reputation if it has been damaged by something you or an employee said or wrote about them. Many general liability policies include product liability insurance to cover claims of bodily injury or property damage their products cause.

Professional liability insurance, otherwise known as errors and omissions insurance or professional indemnity insurance, protects a business against claims related to mistakes in professional services provided. Professional liability insurance protects a business if it is sued for related economic damages and legal costs associated with a suit. This insurance particularly applies to those businesses that provide professional services.

Business income coverage or business interruption insurance can help you recover costs and lost income if your business is forced to close due to a disaster. The causes of closure can be due to a natural disaster, fire, hurricane, theft, or other calamitous covered events.

Commercial property insurance helps you pay for damage to your business property, including inventory, equipment, tools, and furniture. It can pay for repair or replacement costs.
Workers’ compensation insurance is required by law in most states. It provides benefits to employees if they suffer from illness or injury from their job. In addition to helping your employees, workers’ compensation can help the business cover legal costs if it gets sued by the sick or injured employee or their family.

Commercial auto insurance helps cover the costs of vehicle accidents that occur while an employee or owner is using them for business purposes. The coverage is similar, with some differences, to that of a personal auto policy.

Data breach insurance or cyber insurance is needed more than ever. If you have a breach, it can help pay the costs of alerting members of the public and restoring your reputation. If your customers’ credit card information is stolen it can cover the expenses of alerting them.
Commercial umbrella insurance is comparable to a personal umbrella insurance policy. It provides additional coverage if a claim against your business is greater than the policy’s limits. It is a reasonable way for businesses to increase their liability coverage.

Employment practices liability insurance provides a business with coverage in the event of claims made by employees alleging discrimination, wrongful termination, harassment, and other employment-related issues. The coverage applies to claims that come up under the Civil Rights Act or related legislation.

Yes, most small businesses do need insurance. The exact policies your business needs are determined by the nature of your business. Consult with your insurance agent or business attorney to decide the best coverage for you. The right coverage could save your business.

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