Deciding which business insurance types best suit your needs is a daunting process. It’s difficult even if you’re familiar with business insurance. It’s near impossible if you don’t know which options are available.
If you fall in the second category, don’t lose your hat just yet. In the sections below you’ll find all the information you need to make an informed decision. When you’re ready to discover what’s available, so you can finally choose the insurance that’s right for you, read on.
General Liability Insurance
This covers your business from a wide variety of liability claims.
- Accidents that result in bodily injury
- The damage you cause to other’s property
- Personal injury claims
If your general insurance doesn’t cover all your needs, you can bolster it by purchasing an umbrella policy. You’ll find more about umbrella policies below.
Property Insurance
This business insurance will cover you if your business’s physical property is damaged. That applies to things like furniture and office equipment.
Business Income Insurance
With this insurance, you’re covered if you close your business temporarily due to unforeseen circumstances. An economic downturn or COVID-19 are two examples.
Auto Insurance
It doesn’t matter whether you are a sole proprietor or you have an army of employees working for you. If you have any vehicles that get used for your business, it makes sense to ensure anyone who drives those vehicles has the right auto insurance coverage.
Don’t assume that your existing auto insurance policy will automatically cover anyone driving your vehicles.
Professional Liability Insurance
This gives you legal protection from on-the-job errors. An example might be if you’re a plumber who broke a water main when you were sent to fix the toilet.
Worker’s Compensation Insurance
This is a requirement in most states. It covers your employees who can’t work due to work-related injuries.
Data Breach Insurance
With the rising threat of hackers, this is a popular choice for businesses that store customer data. In essence, it covers costs related to confidential or business-related data breaches.
Commercial Umbrella Policy
An umbrella policy will help you fill any holes in your other types of business insurance. It helps you extend your coverage. For example, you may purchase an umbrella to cover costs that exceed the limits of your current liability policy.
Business Vehicle Insurance
This covers any vehicles your company hires, leases, or purchases. It will cover you regardless of who’s at fault when you get in an accident.
Product Liability Insurance
What if your customers are injured while using one of your products? Your general liability insurance won’t cover it, but product liability insurance will. Injured parties may choose from a Non-structured or, the more common, Structured Settlement.
Business Interruption Insurance
This is like business income insurance. It covers you for your loss of sales while your business is unable to operate. Examples include floods and fires.
Key-Man Insurance
If your company depends on 1 or 2 specific employees, this may be your best business insurance choice. You can purchase specialized insurance that only covers those key employees.
The Business Insurance Types That Work for You
Now that you know which business insurance types are available, you can choose which is right for you. If you found this information helpful, please hop over and browse our enormous library full of professional business articles. So long and good luck!
