8 Types of Insurance for Small Businesses

8 Types of Insurance for Small Businesses

Staying protected in a crisis must be the gold standard for any business, large or small-scale. Business insurance secures the company from risks that may arise during normal operations. Mistakes are unavoidable circumstances in a company’s daily grind. Therefore, stable and reputable insurance coverage must be available. In this way, business owners can lean on them when push comes to shove. Unfortunately, there is a variety of insurance classifications out there, and it can be overwhelming. Here are eight types of insurance a small business can benefit from; streamlined for your convenience.

General liability insurance

General liability insurance offers business protection resulting in bodily injuries to someone else, third-party property damage, and personal injuries such as libel or slander.

Commercial property insurance

Commercial property insurance protects owned or rented buildings and equipment utilized in your business operations. However, be wary that this type of policy does not cover damages caused by acts of God such as typhoons, floods, and earthquakes. To ensure your business is protected, explore other options such as commercial flood insurance.

Professional liability insurance

professional indemnity liability insurance policy will protect you from lawsuits resulting from alleged errors in professional services provided by you. This type of liability insurance is also referred to as errors and omissions (E&O) insurance.

For example, providing the following services requires E&O insurance such as financial services, wedding planners, doctors, and lawyers.

Case in point, a licensed architect or builder is protected by architect insurance coverage from inadequate or negligent work claims made by clients. This insurance results in secured and well-covered professional practice.

Data breach insurance

Data breach insurance is also known as cyber insurance. It responds to businesses with claims of proven data exposure. This type of insurance protects companies from lost or stolen data by client notification, theft monitoring services, and service recovery or public relations campaigns.

Workers’ compensation insurance

Workers’ compensation insurance provides benefits to employees involved in an accident and sickness on the job. This benefit covers death expenses, medical bills, ongoing care like therapy, and lost wages due to missed work from recovery.

In most states, this type of insurance is mandatory for businesses to provide for their employees. Non-compliance may result in sanctions and penalties.

Commercial umbrella insurance

Commercial umbrella insurance is a policy that extends coverage limits beyond the standard benefit. For example, medical bills exceed the limit of $10,000, this type of insurance policy will cover expenses beyond the stated amount.

Commercial auto insurance

Commercial auto insurance protects the company from road accidents while using the company car during business hours. This type of insurance covers property damage and bodily injury claims from mishaps the business caused. Commercial auto insurance for experienced providers like FreewayInsurance.com is different from personal car insurance because commercial auto insurance extends to third-party claims in accidents caused by company-sanctioned activities

Small businesses should invest in these insurance types because they are a good foundation for start-ups as they expose their goods and services for the first time. In addition, insurance policies extend peace of mind to business owners due to coverage and business security.

It is a worthwhile investment for business owners because crises, accidents, and human errors are inevitable, so a solid insurance policy can certainly protect your reputation, brand, and profitability.