Here are common types of insurance small businesses often need:
- General Liability Insurance: Covers claims related to bodily injury, property damage, and advertising injuries. It’s essential for any business interacting with the public.
- Professional Liability Insurance: Also known as Errors and Omissions (E&O) insurance, this covers claims of negligence, mistakes, or oversights in professional services.
- Commercial Property Insurance: Protects your business property, including the building and its contents, from damage caused by fire, theft, and natural disasters.
- Business Owner’s Policy (BOP): A BOP combines general liability and property insurance into one package, often at a lower premium, and is popular among small businesses.
- Workers’ Compensation Insurance: Covers medical expenses and lost wages for employees injured on the job, typically required by law if you have employees.
- Commercial Auto Insurance: Covers vehicles owned by the business for accidents, damage, and liability. It’s essential for companies that rely on transportation.
- Product Liability Insurance: For businesses that manufacture or sell products, this protects against claims of injury or damage caused by a product.
- Cyber Liability Insurance: Helps cover costs associated with data breaches and cyberattacks, including notification and recovery expenses.
- Business Interruption Insurance: Covers loss of income and operating expenses if your business is forced to shut down temporarily due to a covered event, like a natural disaster.
- Employment Practices Liability Insurance (EPLI): Protects against claims of wrongful termination, discrimination, harassment, and other employment-related issues.
These insurance types address specific needs and risks, helping small businesses stay protected against unexpected financial losses.