6 Types of Insurance Every Small Business Owner Should Have
Nobody ever said that owning and operating a business was simple— and as a small business owner, you know first-hand that there is plenty that goes on behind the scenes to get your business in the best shape.
Though nobody can quite prepare you for all of the trials and tribulations of being a small business owner, there are a number of measures you can take to assess all of the calculated risks associated with your job. No, you can’t predict what will happen in the future, but you can prepare and set yourself up for success regardless of what happens.
There are hundreds of types of insurance out there are that uniquely designed to grant you the peace of mind you deserve in the event of an unforeseen emergency or accident. When it comes to business insurance, having the right type of insurance means protecting you and your business against devastating monetary loss.
For those unsure of which insurances may be best suited for your business, we’ve compiled a list of the 6 types of insurance every small business owner should know about.
1. General Liability Insurance
General liability insurance is designed to keep you covered in the event of an unexpected accident or injury.
For example, let’s say a customer browsing through your brick and mortar shop slips on a puddle of water created by a roof leak.
Let’s also say that this customer ends up breaking their arm and needing costly medical attention. General liability insurance can help cover the attorney fees and medical costs that are bound to befall you in the event of a lawsuit—should you be found legally responsible.
2. Workers Compensation Insurance
While the landscape and evolution of humane automation for insurance claims are quickly changing the face of modern worker’s compensation insurance, it’s still a vital piece to any small business insurance puzzle.
Workers compensation insurance is specifically designed to provide coverage for the associated medical costs in the event of an on-the-job injury. Workplace accidents can be incredibly expensive to cover out of pocket, so it’s always best to be prepared with the proper coverage.
3. Business Owner’s Policy
A business owner’s policy is a customizable policy that includes a vast array of different insurances a small business owner may need. This includes:
- Property insurance
- Business interruption insurance
- Crime insurance
- Vehicle coverage
- Liability insurance
The beauty of the business owner’s policy is that you can tailor-make your perfect policy to fit the needs of your small business. To make the package even sweeter, you’ll also be able to score a better deal on bundling than you would on separate individual policies.
4. Data Breach Insurance
Cybersecurity has become one of the most talked-about problems among modern businesses. The reality is that most businesses depend on the internet to keep their business operations afloat. Having any of that confidential data exposed could have devastating results.
Whether it’s managing your payroll or storing important client contracts, all of your sensitive data must be well protected against any third-party hackers. Data breach insurance provides this exact protection—safeguarding your servers, files, and documents from costly damages associated with a sudden data breach.
5. Product Liability Insurance
If your small business is the type that manufactures goods, you understand your responsibility to ensure that each product is safe for the consumer market. In the event of a careless mistake or a manufacturing oversight, product liability insurance provides coverage against damages incurred from a faulty project.
It is incredibly common for lawsuits to be filed against the owner or company for damages caused by a faulty product, even if every possible measure is taken to ensure the utmost safety of the product. Product liability insurance covers such claims and associated costs.
6. Property Insurance
Property insurance should be a top priority for business owners who rent or own their building or office space. Property insurance covers damages ranging from inventory and equipment to signage and furniture. Whether it’s a fire, storm, or criminal thievery, property insurance grants you the peace of mind you deserve for the property you’ve worked so hard to own and maintain.
Set your small business up for success this year with these tried and true insurance types. How do you stay protected? Let us know in the comments below.