4 Types of Insurance to Consider for your Small Business

Last Updated:
January 13, 2022

Types of Insurance to Consider for your Small Business

Having insurance is crucial for every business, no matter what type or in what industry. However, the types of insurance can vary depending on the industry and size of the business. Larger corporations often pay large sums for their insurance needs, but small businesses can often pay less for their insurance policies. Thus, as a small business, below are the types of insurance to consider so you are covered in an emergency.

Small Business Insurance

There are many insurance plans specifically for small businesses of all types. Often these plans cover the costs of property damage to your office or workspace. This coverage is essential to keep a business running without issue as the policy covers the repair costs. Additionally, small business insurance can help provide you with income if your business has to stop operations for a period of time. Small business insurance policies are easy to customize to the business needs. For instance, adding an auto insurance policy will cover the medical bills if employees are in a car accident. Adding flood insurance will help cover the costs of property damage from flooding, which can be common in warehouses. Some small business insurance plans also include a Commercial Umbrella Policy. This covers your business if any claim or lawsuit is filed against you exceeds the coverage of your liability.

Liability Insurance

Any business, no matter how small, should have a liability insurance policy. This can help protect the owner from bankruptcy and the business if it ends up in court. Often these insurance plans provide coverage through general liability and professional liability policies. General Liability covers the business costs if an employee files a lawsuit regarding injuries at work. However, professional liability covers any lawsuits that suppliers or customers file. Often these lawsuits revolve around transaction errors or an error in service offerings. Having liability insurance can protect your brand image while protecting the company's finances.

Property Insurance

Other than protecting your small business against lawsuits, you must also protect the office itself along with the equipment and tools within it. This is where property insurance comes in, to cover you against damage, misuse, and theft. After all, your small business could suffer significantly if equipment sustains damage and you are unable to replace it. Businesses can customize property insurance plans to suit their needs. These policies can cover fire, theft, vandalism, or any accidental damage. Additionally, you can add business loss policies to your property insurance in case the damage is too severe to reopen.

Packaged Policy Coverage

If you are in need of several insurance policies from different plans, many insurance brokers offer a packaged policy instead. This allows small businesses to get multiple insurance policies in one plan. Often this decreases costs well also ensuring your small business has the coverage it needs.

When choosing the types of insurance to consider for your small business, ensure you look at what you need to keep the company running. This can include equipment, the workspace, tools, and employees. These aspects will all impact what type of insurance your business needs and how much coverage you require. Consult an insurance specialist or your business attorney before you sign any policies so everything has coverage.

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