When starting a small business, you’ll need to understand what type of insurance is sold to small businesses. The common types of small business insurance available to you include general liability, commercial property, professional liability, workers’ compensation, and commercial auto insurance. This blog will explore these types of insurance and why you may want to look into every kind for your business.
The Different Types of Small Business Insurance Explained
General Liability Insurance
General Liability Insurance protects your business from claims due to bodily injury or property damage to a customer or client. A common type of injury would be someone slipping and hurting themselves when visiting your business location. In this case, your general liability insurance would cover any medical expenses applied to the injury. A specific type of general liability insurance policy that many small business owners also have is product liability insurance. Product liability insurance protects your company if your products cause bodily injury or property damage.
Commercial Property Insurance
Commercial Property Insurance protects your physical property where you conduct business. Commercial property insurance is essential to protect even your company equipment, whether the commercial space is owned or rented. For example, if someone were to break into your office space and steal computers, commercial property insurance would help cover the costs of replacing them.
Professional Liability Insurance
Professional Liability Insurance offers protection if someone makes a claim due to a mistake made in the professional services your business offers. Suppose one of your services leaves a client paying the penalty due to an error you made. In that case, professional liability insurance can cover the legal fees associated with the potential lawsuit. This insurance is often referred to as errors and omissions insurance and can save you a lot of money in a worst-case scenario.
Workers’ Compensation
Workers’ compensation benefits workers if they get sick or injure themselves on the job. If an employee deals with a work-related injury, workers’ compensation can help cover the medical costs of treating the injury. Many states require workers’ compensation.
Commercial Auto Insurance
Commercial Auto Insurance helps cover property damage and bodily injury claims if an employee gets into an accident while driving a company-owned vehicle while conducting business services. If an employee is driving a vehicle and gets into an accident while on their way to a work-related event, then commercial auto insurance can help cover the costs associated with the injury.
Contact Us Today
We realize that you have many options when choosing the best insurance for your specific type of business; that’s why we pride ourselves on being available to our present and future clients. If you’re interested in learning more about what type of insurance is sold to small businesses, the options available to you, and which are a worthy investment when protecting your business, visit our contact page here. Our team will assist you when making this critical choice for your business.