There are plenty of expenses involved with running a successful business. One of the most essential expenses is insurance. Without adequate insurance, you can lose your business if something were to happen. There are several types of business insurance available. The one you choose would depend on the level of protection you need, the type of business you own, and the laws in your state.
#1 General Liability Insurance
General business insurance protects your business from a few types of claims. These include:
*Bodily injury to anyone on your business property.
*Property damage to another person’s belongings while on your business property.
*Personal injury claims, such as slander and libel
This type of insurance is recommended for small businesses. Larger businesses that worry about these types of claims can also benefit from general liability insurance.
#2 Commercial Property Insurance
You should carry this insurance whether you own or rent the building where your business is located. It will cover the cost of damage due to a covered loss and cover the necessary equipment to keep your business running.
This insurance will not cover floods or earthquakes. If you want to be covered for these losses, you will need to take out an additional policy.
Every business owner in every industry should carry this insurance to protect the building and equipment if disaster strikes.
#3 Business Income Insurance
If your building has been damaged or destroyed during a covered loss and you can no longer operate, this insurance can help. You can use the insurance to replace your business income to cover ongoing expenses, such as payroll, rent, and utility bills. Every business in every industry will benefit from this type of insurance because you can keep things going while repairs are made to the property. Without this type of business insurance, you could get behind on essential payments until things are up and running again.
#4 Professional Liability Insurance
This insurance will protect you if you are sued for making a mistake. If you give poor information to a customer or client, this insurance will cover you if they sue. You will also be covered if you provide late, incomplete, or unsatisfactory work.
Most businesses can benefit from this service, particularly if you provide a service. This can include contractors, plumbing companies, and electricians. Your business will be protected if a customer is unhappy with the service, you provide, and they decide to file a lawsuit. This type of insurance can be tricky to get right, and this is where a broker such as Smart Business Insurance can be invaluable if helping you get the appropriate coverage.
#5 Worker’s Compensation Insurance
This insurance is a must. Most states in the U.S. require employers to carry this insurance to keep their employees protected. If an employee is injured on the job or they get sick due to the work they are performing, they will be covered for the following:
*Medical bill coverage
*Cover lost wages for the time they are out of work
*Cover ongoing care such as physical therapy
*Cover funeral expenses if an employee died due to a work-related injury or illness.
If you don’t have worker’s compensation insurance, you will be subject to fines, penalties, and even criminal charges.
This is an insurance that all businesses should have, regardless of the industry they are in. This insurance policy should be purchased before the first day your employees arrive to work.
#6 Data Breach Insurance
This insurance is essential if your business stores customers’ personal information. Banks, IT businesses, and medical facilities can all benefit from this insurance. In today’s technological world, businesses are at risk of being hacked, and personal information such as bank account information, social security numbers, and other private information. If there is a data breach, this insurance will help you cover the cost of the following:
*Notify the individuals whose information has been breached.
*Offer identify theft monitoring services so customers can be sure their personal information isn’t being used.
*Create a public relations campaign to put customers at ease about the breach.
This insurance will help you prove to your customers that you care about the breach and will do whatever necessary to make things right. This can salvage your business’s reputation.
#7 Commercial Auto Insurance
This insurance is essential if you have employees who drive company-owned vehicles. A personal car insurance policy won’t cover your employees if they are driving a company vehicle when the accident occurs.
Any business that provides company vehicles or trucks can benefit greatly from this insurance. It will ensure that your employees and the vehicle are protected. The insurance will cover the medical expenses and property damage that was caused during the accident.
#8 Commercial Umbrella Insurance
This insurance is designed to provide additional protection. If you file a claim on one of your business policies and the claim exceeds the limit, this insurance will help you cover the difference.
Commercial umbrella insurance is recommended for any business that wants the additional coverage, so they don’t have to pay any damage from their own pocket.
#9 Directors and Officers Insurance
This insurance is designed to cover management, such as directors and officers, and their spouses. If a member of management or their spouse is personally sued y an employee, investor, competitor, vendor, or customer for a wrongful act, this insurance will cover any costs involved.
This insurance is necessary if your business has a board of directors or if your business has non-profit status. It will also attract senior leadership because they will know they are protected.
#10 Health Insurance
Health insurance won’t protect your business, but it is great in another way. If you want to attract educated, qualified employees to your business, offering health insurance will help. Everyone needs health insurance, and if they can get it from their employer, it is a great reason for them to stay. A good health insurance plan is a great way to avoid frequent employee turnover.
This insurance is helpful to any business that wants to attract quality employees and keep them.
If you are planning to open a business, you want to have the most coverage possible. Without adequate coverage, you could lose everything if a disaster were to happen. Many business owners carry more than one of these types of insurance based on the business’s specific needs.