Are you wondering what types of business insurance you should get for your business? Did you know that an estimated 75% of small businesses are underinsured?
Not having proper business insurance coverage can leave your business vulnerable. Sure, paying a premium on multiple policies can seem like a hassle. Still, it’s always worth it.
We’re here to tell you about the different types of business insurance you need to protect your business, employees, and customers.
Read on for a short but useful guide to the different types of business insurance.
The Business Owner’s Policy
At the bare minimum, every business owner should purchase the umbrella package, often referred to as the business owner’s policy. A business owner’s policy should cover three specific and important things:
- General liability
- Commercial property
- Business income (aka business interruption)
What do these types of insurance cover? General liability insurance protects you from the financial burden if customer injuries or personal property damage occur on your property. Commercial property insurance provides coverage when your commercial property needs upgrades or damage control.
Business interruption insurance often goes hand in hand with commercial property insurance. If you can’t run your business for a period of time, business interruption insurance covers that lost income to protect you from going under.
Employee Liability Insurance
Most states require most businesses to protect their employees with coverage. More specifically, you must provide worker’s compensation. You may also need to provide employers liability insurance.
What is the difference between these two policies? Worker’s compensation covers work-related injuries or illnesses. For example, if someone slips and falls at work, they may require worker’s compensation.
Employers’ liability insurance can cover some industry-specific policy gaps. For example, worker’s compensation may not cover illnesses caused by toxic substances. This is where employers’ liability comes in handy.
Additional Protections for the Unexpected
Are there any other types of insurance that you should get? The answer is yes, but it will depend on a few factors. That includes your industry, business size, and location.
For example, commercial property insurance may not cover flood damage. If you live in a flood zone, you may want to purchase an extra policy that does.
You may also need to insure other types of property. For example, if you have company cars, you will need an extra policy to cover damage or liabilities related to the cars.
Get Covered With the Right Types of Business Insurance
Too many businesses are vulnerable. Why? They don’t have enough insurance to protect their property, employees, and customers.
Don’t let that be you. Use this guide to make sure that your business has the types of business insurance it needs to not only survive but thrive.
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