Purchasing insurance is an essential part of owning and operating a successful business. The right insurance coverage protects your company’s assets and helps minimize risks from events like lawsuits, property damage, inventory loss, and employee injuries. With many types of business insurance policies available, you’ll want to understand the options to determine what best fits your company’s unique risks and needs.
General Liability Insurance
General liability insurance, sometimes referred to as commercial liability insurance, is one of the most common and important policies for small businesses. It protects against financial loss resulting from bodily injury, property damage, medical expenses, libel, slander, and the negligence or other wrongful acts of you or your employees. For example, if a customer slips and falls in your store, general liability insurance can pay for their medical bills and protect you from a lawsuit. Most businesses need at least $1 million in general liability coverage.
Professional Liability Insurance
If your business provides professional advice or services to customers, consider professional liability insurance for a small business, also known as errors and omissions insurance. This type of policy pays legal expenses and judgments for lawsuits customers may file against your business for financial harm or losses caused by negligent work or failure to perform. Architects, accountants, consultants, and technology professionals often carry this coverage.
Commercial Property Insurance
Property insurance covers your company’s physical space, whether you lease or own it, for damages and losses stemming from natural disasters, fires, theft, and vandalism. It can pay to repair or rebuild your office, retail store, warehouse or other physical locations. Electronics, company vehicles, and inventory may also be protected under a commercial property policy. Understanding property coverage limits is essential so you have adequate protection for rebuilding costs.
Workers’ Compensation Insurance
In most states, you are legally required to carry workers’ compensation insurance if you have any W-2 employees. It provides wage replacement and medical benefits to employees who suffer job-related illnesses or injuries. This protects both your employees and your business from the significant financial impacts such occurrences can have.
Business Interruption Insurance
While property insurance may pay for physical damages to your company, business interruption insurance replaces income lost while your company is unable to operate due to covered events like natural disasters and fire damage. It can pay for operating expenses, payroll, taxes, and other ongoing business costs for the duration of the interruption so that your operations can restart smoothly once repairs are finished.
Product Liability Insurance
If your business manufactures, wholesales, retails or distributes products, consider product liability insurance. It protects you financially in the event a flawed product injures a buyer or damages property. Even service companies face some risk selling branded merchandise and should evaluate this coverage.
As you explore insurance options, work with a qualified insurance broker who offers business coverage across many top-rated insurance companies. An expert can help you evaluate risks, ensure proper coverage limits, and identify opportunities to customize a plan for your company’s unique operations and needs. With the right business insurance coverage in place, you have greater protection from the unexpected events and realities all companies inevitably face.
Staying adequately insured allows you to focus on running your business successfully knowing you will have support if costly claims or legal situations emerge. Partnering with a trustworthy broker for guidance makes getting and keeping the right insurance coverage much easier so you can operate with greater confidence as you build your business.