What Kind of Insurance Does a Small Business Need?

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Do you need insurance for a small business? 

We often hear this question, but there isn't an easy answer. Because the type of business insurance coverage you need for your small business depends on what your company does and the state you're in. In fact, some small business insurance policies are required by state law, and it's up to you to make sure you have one.

 Correct coverage. Without the right type of small business insurance, you may have to pay out of pocket for claims. Many small businesses do not have the resources or capital to cover claims, which means they cannot survive. That's why small business insurance is an important investment to protect your company.

 8 Common Types of Insurance Small Businesses Need:

1.General Liability Insurance

General liability insurance helps protect your business against claims that it caused bodily injury or property damage to someone else. For instance, this coverage can assist in covering a customer's medical costs if they slip and fall inside your store. Liability claims from work done away from your location may also be covered under a coverage known as product-wide operations coverage.

 

A general liability insurance coverage that covers product liability is also obtained by many small business owners.

 This can help protect their company from claims for bodily injury or property damage caused by their products.

2.Insurance for professional liability

Claims resulting from mistakes made in the professional services your company offers are covered by professional liability insurance. Suppose your accounting company has to pay a fine because of an error on a client's financial statement. Professional liability insurance can help with the cost of legal defense if they sue your company. By purchasing this coverage, you can reduce the expense of filing claims. Errors and omissions insurance, or E&O insurance, is another name for this coverage.

3.Coverage of Business Income

In the event that covered property damage prevents you from operating, business income coverage, sometimes referred to as business interruption insurance, can assist in replacing lost income. This covers harm caused by theft, storms, and fires. 

4.Insurance for Commercial Property

Insurance for commercial property helps safeguard the tools and structures you own or rent. Hence, commercial property insurance can assist with replacing your company computers in the event that someone breaks into your premises and takes them.

5.Insurance for Commercial Property

Insurance for commercial property helps safeguard the tools and structures you own or rent. Hence, commercial property insurance can assist with replacing your company computers in the event that someone breaks into your premises and takes them.

6.Commercial Auto Insurance

If you or an employee is involved in an accident while operating a company-owned car for business purposes, commercial auto insurance can assist in paying claims for both property damage and physical injury. Therefore, this insurance might assist in covering the costs if your employee makes a delivery while veering off the road and strikes a mailbox.

7.Insurance Against Data Breach

If personally identifiable information is lost or stolen, data breach insurance assists your company in responding to the incident. It can assist in paying for:

• Inform affected clients or customers
• Launch a PR campaign to enhance the image of your company Provide credit monitoring services

8.Commercial Umbrella Insurance

Your company's liability plans' limitations are increased by commercial umbrella insurance. Therefore, commercial umbrella insurance might assist in making up the difference if a claim exceeds the limitations of your coverage.