Business insurance is an essential part of risk management and protecting your business. There are many mishaps that could befall you, so it’s important to have different types of coverage to protect against various risks. However, the process of getting the coverage your business needs can seem very overwhelming. Determining what kinds of insurance you need can be complicated, and we recommend enlisting the help of a trustworthy insurance advisor. Nonetheless, we’ve come up with a list of seven types of coverage that you might want to consider for your business.
General liability is the coverage that would protect your business if someone got hurt on your property and your business was found responsible. So, if someone slipped, broke their arm, and sued you, general liability would help you with the costs you’re legally obligated to pay. GL usually covers claims against your business of bodily injury, property damage, advertising injury, or personal injury (such as libel or slander.)
Property insurance will cover your business against losses such as fire and lightning damage. It will cover the building itself and the contents. The specific losses covered depends on the insurer and your policy, so you have to check and see what losses are covered and evaluate which losses you need protection from.
Business interruption insurance
If you face a loss that forces you to close temporarily, business interruption insurance will help your business by reimbursing you for lost income. Many businesses never reopen following a disaster such as a fire because the lost income can be crippling, which is why business interruption coverage is so important.
Workers compensation helps your business provide for your employees if they get hurt on the job or become ill due to their job. It provides medical payments and reimburses them for the wages they lost while unable to work. It will also give a worker’s family death benefits if an employee is killed on the job. Any business with three or more employees is required by state law to carry workers’ comp, so you may have to get workers comp.
Employment practices liability insurance
Employment practices liability insurance (EPLI) will help your business cover the costs of an employment-related lawsuit. Typically these policies will help you if a prospective, current, or former employee brings charges against your company for discrimination, sexual harassment, or wrongful termination. These lawsuits can be extremely expensive, and even if your business did nothing wrong and the claim has no grounds, you still have to pay to prove it. Even small businesses are susceptible to employment-related lawsuits, so you may want to consider EPLI.
Cyber liability insurance
Cyber liability is also very important for businesses – as we become more and more dependent on our technology and our computers, they become more of a liability. Cyber insurance protects your business in case you become a victim of a data breach or hack. It will also cover a system failure that causes your business to grind to a halt. Cyber extortion, where hackers take your computers hostage electronically and demand payment to unlock it, can also be covered. Even small businesses are vulnerable to the effects of technology problems, and that’s why it’s important to manage your company’s cyber risk.
Business owner’s policy (BOP)
A business owner’s policy, or BOP, is called a package policy because it combines several different types of coverage into one convenient bundle. Typically, a BOP will combine general liability, property, and business interruption insurance. However, you can increase your business’s level of protection by adding coverages to a BOP. Your business may or may not qualify for a BOP, but it’s worth investigating because you could save money on your business insurance.
Every business is different, so every business is going to need different types of insurance. The coverages listed above are only some common types of small business insurance. You may need additional coverages depending on the type of work you do and your location. That’s why it’s important to find a trustworthy insurance agent who knows your industry so that they can advise you on how to insure your business.
If you’re interested in speaking with an insurance professional and saving money on your rates, please feel free to contact our team! We can help answer any questions you might have about your business insurance. We can also help you get cheap business insurance quotes. All you have to do to get some quotes is fill out our online form or give us a call today.