What Insurance Do You Need for Your Small Business?

What Insurance Do You Need for Your Small Business?

When it comes to insurance, each industry has its own requirements and standards. Running a restaurant is not the same as running a hospital, for example, and you will not face the same risks with one as you would with the other.

But every business shares the same basic necessities: liability and property. With comprehensive business insurance, you can find a cheaper rate for both liability coverages and property coverages for your business.

Bodily Injury Liability: This liability coverage provides compensation if a client or third party is injured due to everyday business activity.

Property Damage Liability: This liability coverage provides compensation if a third party’s property is damaged due to everyday business activity.
Product Liability: If a product produced, made or sold by the company causes bodily injury or property damage, product liability provides compensation for the incident.
Property Coverage: One of the most important parts of a company are its physical assets. Property insurance provides compensation if the structure or other owned property of the business is lost or damaged due to a covered incident. Covered dangers include fire, lightning, smoke, hail, windstorms, theft, vandalism and more.
Business Interruption Insurance: This type of insurance is crucial if your business is rendered inoperable due to a disaster. Business interruption insurance helps compensate for lost income when the business is unable to run while repairs are being made.

For small businesses in low risk industries, it is usually recommended that you invest in a business owners policy. A business owners policy combines important insurance such as general liability and commercial property insurance into a single policy.

Who Qualifies for a Business Owners Policy?

Most small businesses with a physical address may qualify for a business owners’ policy. Small businesses typically invest in a business owners’ policy because it is relatively affordable compared to other business packages and contains important coverages that every industry needs. Business owners’ policies are generally less flexible than other business policies, however. If you’d like to expand your company’s BOP, you can add an umbrella insurance policy, which provides added protection when your other liability coverages reach their limits.

Make sure to speak with an insurance agent about your coverage needs depending on your location, industry and size. Additional coverages to consider include professional liability, commercial auto insurance, workers compensation and umbrella liability insurance. Connect with an insurance agent today.

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