Insurance for small businesses
As a business owner, you need to be aware of the different types of insurance that protect your company. There are many options for small businesses and these can vary depending on your needs.
Some companies may choose one type or another, so it’s important to do some research before making a decision. Here is a list of what each type covers:
Professional liability insurance
Professional liability insurance is a type of commercial insurance that covers claims against your business. It can help protect you from lawsuits, which are filed by customers or employees who are injured by your products or services.
Professional liability policies typically contain two main types of coverage:
General professional liability, which provides coverage for bodily injury and property damage claims against you as an employer (lawyers, doctors, etc.). This kind of policy also covers some legal defense costs if someone files a lawsuit against you—but note that it doesn’t cover judgments awarded to plaintiffs!
Business interruption (BI) coverage protects your business if it has to close down due to an accident or natural disasters like flooding or earthquakes. BI policies usually offer higher limits than general PPLs because they’re more expensive—and they may also require more paperwork before purchase because there are so many different variables involved when determining whether BI should be purchased separately from PPLs instead of bundled together into one policy with both types included under one umbrella agreement.*
General liability insurance
General liability insurance protects your business from lawsuits. It covers injuries and property damage that result from an accident or other hazard at the place where you operate, including the building in which you conduct business, your employees’ work areas, and vehicles used to transport people or materials.
General liability protection is usually limited to $1 million per occurrence (a single event), so you must choose a policy with sufficient limits if you want coverage for anything beyond routine occurrences such as thefts or vandalism. If there’s any chance of something happening in an emergency—say someone trips on their way into the office—you’ll want additional coverage beyond what’s required by law.
A business owner’s policy provides broad coverage for general liability claims against various parties involved in manufacturing products sold by the company; however, they don’t provide coverage against personal injury claims brought against employees while they’re working at home (though this type of claim would typically fall under workers’ compensation).
Workers’ compensation provides medical care, disability, and death benefits for employees who are injured on the job. It’s a state-sponsored program that protects employees and employers from liability for injuries sustained by other people. Workers’ compensation is often referred to as “workers’ comp” or simply “comp.”
Workers’ compensation is a no-fault system—meaning it requires no proof of fault or negligence on either side before issuing payments or benefits in cases of injury.
This type of insurance was originally intended to cover only those with an occupational disease, such as cancer or heart disease; however, over time it has evolved into an effective way for businesses to protect themselves against lawsuits brought by injured workers who may have been acting within their legal rights at all times during their jobs (such as refusing unsafe conditions).
Product liability insurance
Product liability insurance protects you from product-related claims, including injuries and damage to property. It’s required by law in some states, and it’s a good idea if you sell products to the public.
Product liability insurance can be included in your general business policy or purchased separately through an agent or broker. You’ll want to make sure that the amount of coverage matches what you need so that you don’t end up paying more than necessary for protection against potential claims against your company’s products or services.
Business owner’s policy
A business owner’s policy is a type of insurance that covers the cost of bodily injury and property damage to you, your employees, and any other people who may be involved with your business. This can include things like:
Property damage from fire or vandalism
Medical expenses related to injuries sustained on the job (if you’re injured on the job)
Legal defense costs if someone sues you for negligence or other charges related to your work
As with any kind of insurance coverage, there are some important things to keep in mind when considering purchasing a business owner’s policy.
It’s important to know how much it will cost before applying for coverage—and there are ways around paying more than you need by choosing an appropriate deductible amount specifically tailored towards protecting your assets (more on this later).
Read more about each type of insurance to protect your business.
Insurance is a way to protect your business from financial loss. It can help you recover from an accident or injury, pay for damages, and provide compensation for lost revenue. Unfortunately, many people do not understand how insurance works or what kind of coverage they need.
The most common types of business owners don’t even think about purchasing insurance until something goes wrong—and then it’s too late! To avoid this situation in the future:
Get educated about what kinds of policies are available for small businesses;
Know which companies offer affordable rates; and
Find out if your state requires that you purchase certain types of coverages through an agent (instead of directly through the company).
We hope you found this article helpful in learning about insurance for small businesses. We also recommend getting quotes from different insurance providers to find out which one best fits your needs and budget.
Remember, it’s never too early or late to start protecting yourself against any potential liabilities when starting up your own business!