Your small business faces numerous risks every day. To protect your business, you need seven different insurance policies. Learn more about what they are and how they help. For additional resources, see Small Business Insurance.
1. Professional Liability Insurance
A mistake, negligence or failure to perform can result in lost business or a lawsuit. Professional liability insurance covers legal defense costs and claims related to services you provide. You can choose a customized policy based on your specific business and needs.
2. Property Insurance
The business space you own or lease should be insured with property insurance. It covers inventory, equipment, furniture, signs and other property if those items are damaged, lost, stolen or vandalized. Because your property insurance does not typically cover events like floods or earthquakes, consider purchasing separate policies for those perils.
3. Workers’ Compensation Insurance
After you hire employees, you are generally responsible to provide workers’ compensation insurance for them. It covers medical payments, lost wages, job training and other expenses for any employees who are injured or become ill on the job. Work injuries and occupational illnesses can be costly, so carry this insurance to care for employees and protect your business.
4. Product Liability Insurance
If your business manufactures or sells products, product liability insurance protects you if a customer is injured or becomes ill from using a product you supplied. You can customize coverage based on the products you sell as you reduce your liability exposure.
5. Vehicle Insurance
If you or an employee is involved in an accident while driving a company vehicle, your business can be liable for property damage and medical payments. Fully insure all company vehicles so your business is covered if an accident occurs.
6. Business Interruption Insurance
A disaster that interrupts your business can be expensive. You may lose sales, have to relocate temporarily or face extra expenses associated with keeping operations going during restoration. Business interruption insurance can help cover those expenses and is particularly important for retail operations.
7. Small Business Umbrella Insurance
Sometimes, underlying liability limits are not enough to cover a large claim. An umbrella policy provides excess liability protection beyond standard limits and can offer millions of dollars in additional coverage to help save your business from major losses.
The right insurance products help your business avoid significant financial losses that could potentially harm your operations. Please ask your insurance agent to review your policies and ensure you are properly protected.
Frequently Asked Questions
Do I need professional liability insurance?
If your business provides advice or professional services, professional liability insurance helps cover claims of negligence or errors and is often recommended.
Does property insurance cover flood or earthquake damage?
Most standard property policies exclude floods and earthquakes, so consider separate policies or endorsements for those specific perils.
When must I carry workers’ compensation insurance?
Requirements vary by location, but once you hire employees you should obtain workers’ compensation to cover work-related injuries and illnesses.
How does an umbrella policy help my business?
An umbrella policy provides extra liability coverage above your primary policies, protecting against large claims that exceed your limits.