5 Types of Insurance Every Small Business Needs

isnuranceIf you own and operate your own small business, there are many things that you need to take into consideration, and business insurance should certainly be one of them very early on, before you even launch your company.

But what types of insurance does your small business really need? Continue reading to learn more so you can be properly covered in the event of a lawsuit, accident, or other disaster.

Property Insurance

Property insurance will cover you if you own a building in which you conduct business or if you have personal property that’s related to your business, such as computers, tools, inventory, office equipment, etc.

This type of policy will protect you in the event of a fire or other disaster, theft, smoke damage, vandalism, and more. And you can also add business interruption/loss of earnings to this policy in order to further protect any earnings that you’d lose as a result of your company being unable to continue operating.

General Liability Insurance

General liability insurance is definitely necessary if you’re going to be operating any type of business, no matter how large or small. Even if your business is based out of your home, you should have this type of insurance coverage in place, as it will give you damages and defense if you or your staff, as well as your services and products, cause or even are alleged to have caused any type of property damage or bodily injury to a third party.

Professional Liability Insurance

Professional liability insurance is also commonly referred to as “Errors and Omissions insurance.” This type of policy isn’t included in the general liability insurance that you should also have in place.

This liability coverage will apply to professional firms, such as accountants, notaries, consultants, real estate agents, hair salons, insurance agents, attorneys, technology providers, and more. It will provide damages and defense for improperly rendering or failing to render professional services.

For some options, check out professional liability insurance, where you can purchase a policy that fits your budget and your needs.

Business Owner’s Policy

Also referred to as BOP, a Business Owner’s Policy is a great little package deal that will give you all of the coverage that you should have as a small business owner. This includes property insurance, along with vehicle insurance, crime insurance, liability insurance, and business interruption insurance.

You can even customize the policy and level of coverage based upon your organization’s unique needs. Ultimately, though, you may find that you’re able to save quite a bit of money by opting for a BOP package rather than purchasing all of the individual policies separately.

Worker’s Compensation

Worker’s compensation insurance is for those employees who may end up injured while working for you and may need to take some time off to heal. The insurance will provide wage replacements, along with medical benefits, and the employee will need to give up the rights to sue you for the accident.

As you can see, there are many different types of insurance policies available to small businesses like yours, so take advantage of them to protect yourself.

If you have any questions, please ask below!