Business owners need proper coverage to protect them from financial losses and liabilities. Small business owners who operate out of their home or a rented space need coverage for their business, property, and workers.
Reviewing six types of small business coverage all owners need helps the business owner determine how the policies protect them.
6 Types of Insurance Every Small Business Owner Should Consider
1- Commercial Property Insurance
Commercial property insurance provides adequate protection for the property and provides help when the property is damaged. The terms of the policy define what events are covered under the policy. Typically, the events include natural disasters, fires, criminal vandalism, and floods.
The policies provide funds for completing repairs or replacing the property if it is a total loss. The property coverage offers some liability coverage for premises liabilities if a customer falls and becomes injured on the property. Business owners who want to learn more about the policies can find details now at habermaninsurance.com.
2- General and Global Insurance
General and global insurance offer coverage for liabilities that lead to lawsuits and financial losses. Small businesses could face personal injury cases due to slip and fall accidents or other premises liabilities.
Product liabilities also present issues for small businesses that create their own products and sell them to customers. The insurance offers funds to pay the plaintiff if they win their lawsuit against the company.
3- Loss of Business Income Insurance
Loss of business income insurance provides replacement income if the company must shut down for an uncontrollable reason. For example, a statewide lockdown due to a pandemic requires the company to shut down immediately.
During the full duration of the lockdown, the business receives replacement funds to pay for business expenses until they can reopen. Circumstances that affect the business only offer assistance that also helps the owner to pay their workers. The circumstances might include the closure of a business that provides its supplies.
4- Worker’s Compensation Insurance
Worker’s compensation insurance provides coverage for injured workers. The insurance provides coverage for medical treatment for injured workers and provides replacement wages until the worker recovers from their injuries.
Any insurance claim is filed as soon as the injury is reported, and the worker is sent to the emergency room for treatment.
5- Cyber Liability Coverage
Cyber liability coverage provides assistance for businesses when a cyber attack leads to the acquisition of confidential financial records. Victims of identity theft could lose significant sums due to the attacks and theft of their financial data.
The coverage offers funds to cover the financial liabilities and complete vital tasks to mitigate more risks in the future.
6- Commercial Auto Insurance
Commercial auto insurance provides coverage for commercial vehicles used by the company. The policies cover the cost of repairing the vehicle and any liabilities caused by a driver. The policies cover the driver and their vehicle if the driver is completing company business while operating the vehicle. It doesn’t cover any accident that happens after the business is closed for the day.
The Bottom Line
Business owners must purchase insurance coverage to protect their business and assets. Without proper coverage, the business owner can lose their physical property if a natural disaster occurs and won’t be able to replace it.
Liability coverage protects the company if an accident happens on their property. Reviewing why business coverage is vital helps the business owners who need to purchase a policy now.
