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What Are the Different Types of Business Insurance That Exists Today?

A survey of small businesses found that 44% of them never had business insurance. They’re taking a huge risk by not having insurance.

A slip and fall lawsuit costs as much as $20,000. You’d have to pay that on your own without the right insurance coverage.

For those that do have business insurance policies, many are still underinsured. They don’t know the types of business insurance policies to get adequate coverage.

Don’t let your business suffer because you didn’t have the best business insurance. Be a smart small business owner and read on to learn the insurance policies you should consider for your business.

1. Business Owner’s Policy

This policy combines general liability with commercial property insurance. The general liability component pays for legal and medical expenses should an outside party get injured or have damaged property from your business.

Commercial property insurance covers damages to your business property. This could be your office, equipment, or vehicle.

For home-based businesses, your homeowner’s policy doesn’t cover these instances. You have to get a separate business policy or a rider on your homeowner’s insurance.

2. Errors and Omissions

This is for service-based businesses. Your business gets protection from claims of negligence, misrepresentation, mistakes, or contract claims.

Coaches, accountants, consultants, advertising agencies, web developers, and designers are a few examples of businesses that benefit from this type of business insurance.

3. Insurance Against Hackers

Cybersecurity and ID theft are two topics that you have to address in your business. There are insurance policies that protect your business if you face a cyberattack or someone steals your business’ identity.

Business identity insurance helps you restore your business credit and recover financial losses.

Cyber insurance helps you improve your security standards, recover lost or stolen data, and provide resources for impacted customers.

4. Snowfall Insurance

Does your business get impacted by the weather? If you’re a government agency, too much snowfall could overrun your budget. Snowplow drivers depend on a lot of snowfall to make money in the winter.

You can’t predict the weather, but you can stabilize your income with snowfall insurance. This protects your organization from too much or too little snowfall.

Your income remains stable so you don’t have to stress about the weather. Reach out to a snowfall insurance company to find out more about this type of insurance policy.

5. Key Person Insurance

Does your business depend on one or two people? What would happen if you or another key employee couldn’t work or suddenly died?

Key person insurance pays for lost income and coverage for some other expenses, such as hiring another employee.

Knowing the Types of Business Insurance

There are many different types of business insurance to consider. Be a responsible small business owner and know the different options out there.

You’ll be able to protect your business from significant losses that could destroy it.

Now that you know how to keep your business safe, head over to the Business and Finance section of this site for tips to grow your business.