Once the location is selected, the products are decided upon, and the client base is built, you feel as if things are finally coming together for your business venture. According to industry giant The Hartford, four out of 10 small businesses will need to file an insurance claim over 10 years. The many types of business insurance available will protect you from the many risks you could be facing. You could suffer drastic losses from claims on products, accidents and vehicles, floods, fire, and loss of income.
This article will point out the different types of business insurance that every small business operator should be familiar with.
What Types of Business Insurance Do I Need Most?
The type of business insurance that will be of greatest assistance to you depends on your business size as well as what type of assets you have. Having a clear picture of what’s available and for what business purposes will allow you to make informed decisions as you experience growth and the challenges that success can bring. Here are some of the most well-known types of professional and commercial insurance coverage that will help you if you find your livelihood at risk.
General Liability Insurance:
This type of small business insurance protects you from the risk of claiming bodily injury and property damage. If another vendor or a customer encounters injury while they are on your property, commercial general liability insurance will protect everything you’ve worked so hard for. This type of coverage will include attorney fees, court costs, and settlements awarded to plaintiffs while doing business.
Professional Liability Insurance:
Anyone such as an accountant or real estate agent should consider getting this type of insurance to protect themselves from claims pending for negligence on any level. This goes above and beyond typical liability coverage, and physicians are another group that must be constantly thinking about adequate protection. As the strenuous pace has picked up since the pandemic, freelancers and business owners are taking on more work, which may make room for more potential to make a mistake.
Commercial Property Insurance:
Business property needs to be protected against natural disasters such as floods, fires, high winds, and hail. A company’s structure, computers, inventory, and supplies are all elements you won’t have to worry about if you’re properly covered. Commercial properties operate businesses such as investment firms, sandwich shops, home entertainment equipment, and hair stylists, and this type of coverage will assure that the elements in your immediate area are covered. Parking lots, your roof, awnings, and other spaces such as outdoor break areas are also protected.
Commercial Auto Insurance:
It is not just delivery services for food that have cars on the go constantly, which is one reason you’ll want commercial auto insurance. Shuttling materials, medical supplies, prescriptions, and land surveys are all examples of businesses that need their employees to be mobile. A commercial auto insurance policy will pay for damage and serious injuries sustained while these vehicles are being operated for business use. If you are running a business and are attempting to use a personal auto insurance policy, you can be legal to drive in some states, but you may have claims denied when disaster strikes. Many businesses that saw the need to suddenly start running errands that have an accident on the way may find themselves surprised when they weren’t covered with the appropriate type of business auto policy. It may not necessarily be illegal to drive with a personal auto policy, but once you are seeing employees need to drive daily it’s time to consider the proper coverage.
Business Income Insurance:
When an emergency happens and you find yourself unable to operate, you are bound to lose income. Situating yourself with a business income insurance policy can protect you from this fearful situation. If there is an accident and a car crashes into your structure, or the roof collapses, business income insurance would cover the losses incurred while the damage is being repaired. Also known as business interruption insurance, this will offer peace of mind when the ways you generate revenue grind to a sudden halt.
Product Liability Insurance:
It is not just within the food and drug industries that products can see risk with liability issues. If a product ends up being defective or unsafe in any way, it may cause personal injury or even damage to physical property. Just as cars undergo recalls for defective construction, other products such as personal electronics can cause sudden accidents. Product liability insurance will cover damage and medical expenses from injuries the product causes. Many items for personal care such as razors and eye makeup could also fall into this category.
Errors and Omissions Insurance:
This type of insurance coverage is ideal for those that have a very focused area of service they provide. If your calculations aren’t perfect, you make other errors or happen to leave out any other data, this type of policy will cover claims as a result. Errors and omissions insurance will pay for the hurdle of legal defense costs and settlements, with those such as lawyers and technicians that could benefit. Therapists and professionals that offer advice are quite sought after in these unstable times, but many are amazed at how fast clients can change their minds if your guidance isn’t crystal clear.
Business Owners Policy
The last few years have dictated a little bit of confusion surrounding business owners’ policies, but one thing is for sure: one of their main benefits is to bundle several of these valuable types of insurance into one package. Many business owners’ policies also offer cyber liability protection, which will assist against the costs of breached data, an event that is happening more and more frequently. Another valuable component found in business policies is for contractors’ equipment, helping with the cost of repair or replacement tools if they are stolen, damaged, or lost.
Workers Compensation Insurance:
This type of policy protects business owners when employees exercise the right to file a worker’s comp claim against their entity or corporation. If they encounter injury on the job or an illness due to their work environment, they are sometimes eligible for compensation. Being properly covered with this policy type will take care of workers compensation income and their extensive medical needs. From the janitorial industry to the medical field, thousands of small businesses need workers comp insurance in case their employees see work-related tasks affecting their health.
Making the Decision for Your Type of Business Insurance:
Long-term protection for your business and personal assets are the reasons why you need appropriate coverage. The best way to pinpoint exactly what you need is by contacting us here at the Alexander Agency of St Charles, where we can spend time discussing your options backed by years of experience and satisfaction. We can take a close look at the pros and cons of each policy as it relates to your overhead and find a solution that is sufficient for your needs.