5 Types of Commercial Small Business Insurance Every Business Owner Needs
Small business owners often wear multiple hats and make numerous decisions daily to keep their business running smoothly. While they can control some aspects of their business, there are potential risks that are beyond their control. That’s where commercial small business insurance comes into the picture. Here are the five types of commercial small business insurance that every business owner needs to have:
1. General Liability Insurance
General liability insurance protects small business owners when their products, services, or operations cause bodily injury or property damage to someone else. This coverage provides funds to pay for medical bills, legal fees, and other expenses associated with a lawsuit. Even if you are not found guilty, general liability insurance can help cover the costs of defending a claim in court.
2. Professional Liability Insurance
Professional liability insurance is also known as errors and omission insurance or malpractice insurance. This type of insurance provides coverage for professionals who give guidance or advice to their clients. Professional liability insurance covers the costs of defending a claim if a client files a lawsuit due to financial loss resulting from an error or omission committed by the professional.
3. Property Insurance
Property insurance is a type of commercial insurance that provides coverage for damage or loss of business property due to various reasons like fire, theft, or vandalism. This insurance policy can also cover the loss of income or business interruption if it’s caused by damage or loss of property.
4. Cyber Insurance
As businesses continue to rely more on technology every day, cyber insurance coverage is becoming more important than ever. Cyber insurance provides coverage for the financial losses incurred due to the theft, hack, or breach of confidential data or information. If your business handles sensitive data like personal identification information, medical data, or financial information, cyber insurance can provide the necessary protection to your business.
5. Workers’ Compensation Insurance
Workers’ compensation insurance is required by law in most states. This type of commercial insurance covers medical expenses and lost wages of employees who get injured or become ill due to their work. Workers’ compensation insurance can also protect your business from lawsuits related to workplace injuries.
In conclusion, commercial small business insurance provides protection for businesses against unexpected risks that can cause significant financial losses. Every business owner should analyze their business risks and select the appropriate commercial insurance to secure their business’s future. By having these five types of commercial insurance policies, small business owners can ensure that they are protected from the potential risks.
