As a small business owner, you want to do whatever it takes to make sure your business succeeds. While the process can feel tedious and difficult, having sufficient insurance coverage is important.
Which insurance policies are important for your small business?
General liability insurance
General liability is a policy that every business should have, no matter where it is based or how much direct contact you have with customers or clients. With this policy, you are protected financially should there be an accusation that you, your employees, your products or your services caused bodily injury or property damage.
Professional liability insurance
While general liability insurance is about physical damage, professional liability insurance covers financial damage. This insurance policy protects you if your goods or services are faulty or are found to cause financial damage to another entity.
Data breach
Data breach insurance protects you should sensitive information you store about employees, customers or clients be accessed by an unauthorized third party. This includes digital breaches as well as those of paper files.
Property insurance
Any small business that has manufacturing equipment, multiple pieces of office equipment or owns the property where your business is housed, should have a property insurance policy. Keep in mind that if you run your business from home, your homeowner’s insurance policy may not cover your business.
Renter’s insurance
If you are renting the space used for your business, you will want to have a renter’s insurance policy. This policy protects you against damage to the property, the contents of the property and personal injury on the property.
Worker’s compensation
This policy provides employees with medical coverage and wage replacement should they be injured on the job. In exchange for this coverage, the employee renounces the right to sue you for the incident that led to their injury.
Should you require multiple policies, it may be more affordable to opt for a customized business owner’s policy. These are policies pulled together by an insurance provider that bundle the various policies you need. To learn more about your options, contact a business insurance broker.
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