It may seem confusing when you first start looking into different kinds of insurance coverage options for your company.
But there are several different kinds of insurance policies that are essential for any small enterprise. Let’s take a look at some of the most common ones.
Don’t take chances with your business. Standard General Liability Insurance protects you against any legal issues that might arise due to an employee’s negligence or misconduct.
Your premiums won’t increase if you add workers. Plus, you get coverage for property damage and bodily injury claims.
So, why risk it?
Here’s a complete list of all important types of business insurance.
List of 12 Types of Business Insurance for Small Businesses
1. Property Insurance
If you own a house or rent out an office space, it’s important to protect yourself from any damage caused by fires, thefts, storms, etc.
Floods or earthquakes aren’t usually included in most homeowner policies. However, they may be considered an “Act of God” (a natural disaster) and therefore may be excluded from coverage.
2. Professional Liability Insurance
You may need professional liability insurance if your company fails to perform a specific duty or makes a big error resulting in damages. Some companies offer E&O coverage for errors and omissions.
You need to clearly state the nature of the work required, the processes used, and any other additional information under the policies.
3. Data Breach
With so much digital information taking up space in our offices, we need to protect it from potential thieves. We can also include information regarding daily operations.
Data breach insurance can protect you from any such mishaps in the case of data loss or breach.
If you’re affected by the data breach, the insurer will cover any damage and costs incurred.
4. Compensation Insurance
Workers’ comp covers medical care, disability, and even funeral expenses for employees who meet with accidents at their workplace.
5. Product Liability Insurance
If you’re manufacturing or outsourcing your own goods, then you need to ensure that you have adequate insurance for them.
If anything happens to your product or if it turns out to be defective, your company will have no choice but to pay for all the damages.
Product liability insurance covers any kind of claim made against a product. It also covers any costs associated with such an incident.
6. Business Interruption Insurance
It’s useful if your work or business gets hit by an unfortunate accident; it compensates for the lost time caused by the accident.
The insurance company will cover any loss of income due to an unexpected business interruption.
Get small business loans for startups
7. Business Owner’s Policy
This is an example of a tailored-made life/health/accident/disability/homeowners/renters/auto/etc. coverage plan. It differs from company to company depending on their needs and requirements.
You can tailor a business owner’s policy to meet your specific needs and business type.
8. Renter’s Insurance
It’s important to get renters’ liability coverage if you own rental properties. If someone damages your rental unit due to negligence, they could be held liable for the cost of repairs.
It covers the contents of any damage caused by the insured person to the covered premises, including their possessions.
9. General Liability Insurance
You shouldn’t worry too much if you don’t have multiple types of business insurance because they’re not necessary for most small businesses. However, if you’re looking for coverage against products, employees, or services causing damage, it’s best to go for general business insurance. They’re ideal for smaller companies as well.
It covers liability for bodily injury, property damage, personal and advertising injury, medical expenses, and legal fees.
10. Personal Automobile Insurance
Business automobile insurance is recommended for businesses that use cars for their daily operations. It provides coverage for all kinds of motorized vehicles and helps protect your business from any liabilities resulting from accidents involving these vehicles.
It also includes different types of car repair and third-party damage.
11. Directors And Officers Insurance
It’s not exactly for smaller companies, but larger ones need to consider it. If a business’ senior management gets involved in a legal dispute and their actions or decision has impacted the business in some manner or negatively affected its profits, the director’s and executives’ liability cover will help them pay out for these losses.
It also covers the damages that result from any director or officers of the company.
Insurers primarily cover legal losses incurred by companies through their directors and officers.
12. Commercial Auto Insurance
If your business has vehicles, then insuring them can help you avoid accidents and protect yourself from liability issues. It can also cover damage to the vehicles themselves.
It includes third-party damage (that is caused by people not associated with the car) and damage to cars used for delivery purposes.
Don’t delay. Cover yourself. A minor error could cost you everything. Purchase insurance as soon as possible!
You may like to read: The Top 20 Vegan Business Ideas to Make You Money
