Top 8 types of insurance policies to consider for businesses

 

The Right Types of Insurance for Businesses

There are a variety of insurance options out there that business owners can find. Insurance helps to protect your company from various risks encountered during normal operations. Choosing what business insurance you need can seem overwhelming, but we are here to help.

 Many business owners start out with a business owner's policy (BOP) for their small business insurance needs. It combines the three essential coverages:

    general liability insurance

    commercial property insurance

    business income insurance

We've made our BOP customizable, so you can add other business insurance coverages to get more protection. For example, if your business provides a professional service to customers, you may want to obtain a professional liability insurance policy. This can help protect your business from claims that it made a mistake with the professional services it provides.

We know that every business is different. That's why we are here to help you find the right type of business insurance.

8 types of insurance policies to consider for small businesses

Depending on the industry you are in, you may need to obtain different types of insurance. This is because each business faces unique challenges and risks. 

While there are many types of insurance you can get, read about eight policies that many small businesses can find to help protect them from various risks. 

1. General Liability Insurance (GLI)

General liability insurance helps protect your business from claims caused by:

    bodily injury to someone else

    Property damage to another person's belongings

    personal injury, such as defamation or slander

2. Commercial Property Insurance

Commercial property insurance helps protect the building and equipment you own or rent that you use to run your business.

Keep in mind that this insurance does not cover damages caused by earthquakes or floods. To help protect your business from these types of claims, you are likely to get a separate policy, such as commercial flood insurance.

3. Business Income Insurance

If you can't run your business because of covered property damage, business income insurance can help replace your lost income. Therefore, you can use this coverage to help pay for ongoing expenses such as rent, utility bills or payroll. This type of insurance is also known as business interruption insurance.

4. Professional Liability Insurance

Business liability insurance helps cover lawsuits that claim you made a mistake with the services provided. This type of insurance is also known as error and omission (E&O) insurance. 

5. Workers Compensation Insurance

Workers' compensation insurance covers benefits for your employees if they are hurt or sick from their jobs. These benefits can help:

    pay their medical bills

    replace most of their lost wages if they miss work to recover

    Cover funeral costs if you lose your life due to work-related injury or illness

    Pay for ongoing care such as physical therapy

Most states require businesses with employees to carry workers' compensation insurance. You could face fines, penalties, and criminal charges if you don't follow your state's law. 

6. Data Breach Insurance

If personally identifiable information is lost or stolen, data breach insurance helps your business respond to the data breach. Some insurers may call this coverage cyber insurance.

Data breach insurance can help you pay for the costs of:

    Notify affected persons

    Offer identity theft monitoring services

    Create a public relations campaign

7. Commercial Umbrella Insurance

Commercial umbrella insurance increases the coverage limits for some of your liability policies. So, if a claim exceeds your policy limit, your umbrella insurance can help cover the difference.

 8. Commercial Auto Insurance

If you drive company-owned vehicles for business, commercial auto insurance helps keep you and your employees safe on the road. It can help cover property damage and bodily injury claims from an accident caused by your business. This is important because a personal car insurance policy will not help cover third party claims in an accident you have with a business-owned vehicle.

 Small Business Insurance Requirements Are There Different Types of Insurance?

Depending on your business type and where you are, the law may require you to carry certain types of insurance. For example, most states require employers to have workers' compensation insurance. Some states have laws for business insurance by industry. For example, accountants may have to obtain professional liability insurance.

 It is important to make sure you are familiar with your state business insurance laws. You can work with an insurance agent to make sure you are following the rules. They suit your needs and budget

Depending on your type of business and where you are, the law may require you to carry certain types of insurance. For example, most states require employers to have workers’ compensation insurance. Some states have laws for business insurance by industry. For example, accountants may have to get professional liability insurance.

 It’s important to make sure you’re familiar with your state business insurance laws. You can work with an insurance agent to make sure you’re complying with regulations. They can help you customize an insurance policy that fits your needs and budget.

 Get Recommendations on the Types of Business Insurance You May Need

Wherever you are with your business, getting the right types of business insurance is important. It can give startups a good foundation when they open their doors for the first time. And it’s important for experienced business owners too, because, depending on your business and your types of insurance, policy needs may change over time.

We’re an insurance company backed by more than 200 years of experience and we’ve helped more than 1 million small business owners. Our specialists want to do the same for you. We can work with you to get the types of business insurance your company needs. Get a business insurance quote today and learn how we can help you.