Just as it’s vital to keep your home and car insured, small business insurance is important for the safety and security of your small business. If you aren’t aware of the importance of small business insurance, or have questions about insurance coverage, take a look at these key areas of insurance for small businesses.
Why Use Small Business Insurance?
Regardless of the type of business, you should be aware of the complicated nature of small business liability. There are many areas of insurance to consider, and each one addresses a different liability your small business may face. Don’t allow an accident, injury, fire or workers’ compensation issue to cause irreparable harm to your business. Every small business insurance plan is unique, so some of these features can be adjusted to fit your unique operation.
What Are Common Areas of Coverage?
There are many types of business insurance to consider, and policies typically bundle more than one type of insurance. You can opt for complete coverage with an extensive policy, but to save on your insurance costs, consider a plan that tailors each area to your specific small business. Here are some of the most important areas of coverage:
- General Liability Insurance: Choosing general liability insurance for small business use is one of the most important decisions you can make for your company. General liability coverage protects you from a wide range of legal situations. Make sure any insurance plan features this coverage.
- Workers’ Compensation Insurance: If you have any employees, it’s wise to carry workers’ compensation insurance. This coverage assists your workers if they suffer an accident, illness or family emergency.
- Business Income Insurance: When a fire, flood or tragedy strikes your business, other insurance options may cover the damage. However, you need business income insurance to reclaim the loss of income during the time you need to shut down your storefront.
- Commercial Auto Insurance: Just like your personal vehicle, any company vehicles need protection from auto accidents. Even if you allow your employees to drive their own cars, you should consider non-owned auto liability.
- Data Breach: Cyberattacks are a real threat, particularly if your business holds sensitive information. Protect yourself from any data breach with this coverage.
- Commercial Umbrella Insurance: If there are areas of general liability insurance that don’t seem to be properly covered, add commercial umbrella insurance. This helps protect you against a wider range of liabilities and extends the limit of liability coverage.
- Property Insurance: Similar to home insurance, you want insurance to protect your small business property. Consider renter’s insurance if you are renting your small business storefront or office.
Should You Have a Business Owner’s Policy?
Depending on your small business, there are many policies to choose from for an effective combination of insurance areas. One popular option for many small business owners is business owner’s policy. This versatile policy can vary between providers but typically includes general liability, business income and property insurance. It’s an effective combination for most business models.
Make sure your business is protected against whatever may happen. Consider each area of small business insurance coverage, and discover where you can find the best policy for your unique small business.
