If you have a small business, or you’re thinking of starting one, something that you want to do is make sure that you have the right type of insurance to protect you and your business. Below are 12 types of insurance that every small business owner should have.
1. GENERAL LIABILITY
This is something that every business owner should have, even if they’re based in a home. This type of policy will provide damages and defense if your employees, your service or products or you allegedly cause or cause property damage or bodily injury to someone else.
2. PROPERTY
If you’re a building owner or you have personal property for your business, such as computers, tools, inventory or office equipment, it’s important that you think about purchasing a policy to protect your property in case there is a theft, vandalism, a fire, smoke damage, etc. It’s also a good idea to think about buying insurance to protect against loss of earning and business interruption to protect you if your business can’t operate.
3. BUSINESS OWNER POLICY
This type of policy will package all of the required coverage business owners need. Often these types of policies are going to include business interruption, property, vehicle, crime and liability insurance. Based on the specific needs of your company, it’s possible to change what’s in the policy. Usually business owners are going to save money because the service bundle often will cost less when compared with the total amount that they are going to pay for individual insurance.
4. COMMERCIAL AUTO
This will protect the vehicles of a company. You can protect the vehicles that are carrying products, equipment or employees. With this type of insurance, you’re able to insure the company’s work SUVs, trucks, vans and cars from collisions and damage. If your company doesn’t have any vehicles but you have employees who are driving their personal cars for company business, it’s important to have non-owned automobile liability so that the company’s protected if the employee doesn’t have adequate coverage or insurance. A lot of times these non-owned vehicles are able to be added to a BOP policy.
5. WORKER’S COMPENSATION
This provides employees with insurance when they are injured while working for you. This kind of insurance will provide medical benefits and wage replacement when an employee’s injured at work. An employee exchanges their rights to sue for these types of benefits. When you own a business, it’s essential that you have this type of insurance since it will protect your company and you from any type of legal complications. The laws in your state may vary, but they will all will require that you have worker’s compensation when you have any W2 employees working for you. There can be really stiff penalties if you don’t have it.
6. PROFESSIONAL LIABILITY
This kind of insurance will provide damages and defense for improperly rendering or failure to render professional services. This isn’t covered under general liability. This type of insurance will apply for any type of professional firm like accountants, lawyers, consultants, insurance agents, technology providers notaries and others.
7. DIRECTORS & OFFICERS INSURANCE
This insurance type protects the company’s officers and directors against any actions that affect the operations or profitability of the company. If an officer or director of the company, due to their actions doing their job, finds that they’re in a situation legally, this insurance type can help with covering the damages or costs that are lost due to a lawsuit.
8. DATA BREACH
If you have a business that stores non-public or sensitive information about clients or employees on their servers, in some paper files or on computers, you’re responsible to make sure that information is protected. If there is a breach either from your paper files or electronically, this type of policy is going to provide you with loss protection.
9. HOMEOWNER’S INSURANCE
This is one of the most essential types of insurance you’re going to need. This insurance type can help with protecting you against any damage to your home and to the items inside your home. This kind of insurance also can help with protecting you from any types of accidents that may have happened because of an action you did or inside your home.
10. RENTER’S INSURANCE
This type of insurance is like homeowner’s but its for people who are renting an apartment or house. This insurance will protect against the property’s contents, personal injury inside the property and property damage. This is also important if you are renting the space that your business occupies.
11. LIFE INSURANCE
This protects someone against death. With life insurance, your insurer is going to pay money to your listed beneficiary when you die. you’re going to pay a premium so that the beneficiary receives benefits. This kind of insurance is essential since it helps you feel secure. When you have life insurance, it lets you know that loved ones are going to be secure when you die.
12. PERSONAL AUTOMOBILE
This is another essential kind of insurance. This has two functions and covers all kinds of road vehicles. It protects both against bodily injury and physical damage when a crash occurs, and also any type of liability that might happen because of the crash.
These are the 12 kinds of insurance that are essential for small business owners. They will help you with keeping yourself and your loved ones, along with your business, protected.
FREE INSURANCE REVIEW
WhitCo Insurance agents provide this free service just for you. Meet with our agents in person or connect online to review your coverage to keep up with your changing insurance needs. If you would like us to explain your insurance policies in plain English, you can contact us a call at 866-298-7608.
