9 Important Types of Insurance for Small Business
Small businesses come in sizes and so the need of insurance should be customized according to the specific needs. Having business insurance for the company will help protecting the business’ income, property, and other liabilities.
Known as commercial insurance as well, it helps the company to cover its assets, income against losses, and property. Small business, no matter in what field, should have insurance for protection in the long run. No business owners would like to see the company crumble down just because protection is nowhere to be found.
Keep in mind that availing coverage is a sure way to protect you, the employees and importantly, the business. Below are the important types of coverage or insurance that will be helpful for any small business:
General Liability Insurance
Every company and business is always required to get liability insurance. It covers bodily injury, property damage, and personal injury that is caused by your business operations. Keep in mind that this insurance is also subject to a coverage limit.
Business Property Coverage
This insurance coverage will help the small business in protecting their office (if they own one) and the furniture included. There is coverage for business’s tangible assets from losses. It helps the business owner to repair, replace, or rebuild any damaged properties. If your business has any physical assets, then property insurance is recommended.
Professional Liability Insurance
This is popularly known as errors and omissions (E and O) insurance. It helps the company against any negligence claims caused by harm that came from performance failure or mistakes. Keep in mind that every industry has a personalized insurance policy addressed to their business.
Product Liability Insurance
A business that creates, sells, or distributes certain product, they are liable for the safety of it. The claims made under this insurance coverage come from defective products that may actually cause harm or injury. The coverage varies depending on the product type.
This type of insurance covers automobiles that are company property. This is also akin to personal car insurance, covering collision, liability, personal injury, as well as uninsured motorists. Car insurance provides different choices in terms of eligibility, limits, and coverage. Business owner can register as many as vehicles under the car insurance.
This is important business coverage, providing the injured employees with insurance. Usually, it offers medical benefits and wage replacement when an employee was injured during working hours. In exchange, the employee’s right to sue the company is off the table. Worker’s Compensation insurance protects the company from any legal problems.
Business Interruption Insurance
This type of small business insurance will help the company if there is a disaster or catastrophic event. In any disastrous event, operations will be interrupted especially if the company has a physical location. Business interruption insurance will provide financial help for the lost income for any catastrophic occasion.
Data Breach Insurance
If the company deals with high volume of data, most likely it will need Data Breach Insurance. There are tons of smart cyber security practices to avoid future problems but data breaches are challenging to handle. This kind of insurance will protect the company from expensive and dangerous nature of data breaches. It also protects the company against any compromised sensitive and non-public information about clients and employees that happened on the company’s computers or servers.
Business Owner’s Policy (BOP)
Business Owner’s Policy (BOP) is an all-in package of insurance that a company might need to protect the operation and the people. Typically, it includes property insurance, car insurance, business interruption insurance, crime coverage, and liability insurance. However, it can be customized according to the company’s needs. A company can save a lot when choosing BOP as it offers bundle of coverage compared to individual coverage’s.