Small Business Insurance: What You Need

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Businesses today need insurance to cover a variety of things, including liability and business vehicles. It’s easy to get confused about the type of insurance that your business needs, especially with more businesses using their home as their office. Here’s a list of the most important types of insurance your business will require. This will also help you comply with local business laws.

1. General Liability Insurance

No matter what business you own, liability insurance is essential. If you, your products or services, or employees are injured in an accident that causes or allegedly causes bodily injury or property damages, this insurance will provide protection and damages.

2. Professional Liability Insurance

Often referred to as “Errors & Omissions Insurance,” this policy protects your business in the event of failure to, or the improperly rendering, of promised services. This insurance is essential because people do make mistakes. This insurance covers you and your company if they fail to perform as promised. It will pay for defense costs and/or damages.

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This insurance is not generally offered under general liability policies.

3. Property Insurance

You should consider property insurance if your business has any buildings, equipment, computers, or other assets. You will be protected against vandalism, fire, and other types of damage.

Insurance that covers loss of earning or business interruption is another type of insurance. This insurance will pay you back as soon as you are able to recover from an event that disrupted your business operations.

4. Commercial Auto Insurance

Vehicles owned by your business must be covered, regardless of whether they are being used by employees or you. Your business should insure these vehicles with a commercial auto policy. In the event of damage or collisions, insurance will protect you.

Even if your employees drive their own cars to work, you still need to have a policy that covers the business in case the vehicle is used for commercial purposes. This insurance is also known as “non-owned automobile liability insurance.”

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5. Worker’s Compensation

Workers’ compensation is a benefit that provides an income and time off to employees or owners who are injured while on the job. Employers also give up the right to sue their employer, which is very important in business. Workers’ compensation insurance is required in certain areas. Therefore, it is important that you understand the legal requirements for this insurance.

6. Directors and Officers Insurance

This insurance will protect your business’s top leaders from actions that may have a negative impact on your company’s profits, profitability, and operations. This insurance covers costs associated with defense and damages in the event that your officers or directors are involved in legal proceedings.

7. Insurance for Homeowners

This insurance is required if you operate your business from home. It might be required depending on your mortgage, but it is important that you inform your insurance company if your business is based out of your home. Some incidents that are not covered by standard insurance may not be covered if you don’t have the right insurance. To ensure that you are compliant and protected, contact your insurance provider before starting a business from your home.

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No matter if your business operates out of your house, an office or on the road you will need multiple types of insurance to cover for liability, accidents and other occurrences.