When owning a business, there’s a lot that you need to protect. Knowing the right type of business insurance is essential for your business to stay successful. The good news is there are many different types of coverage options to ensure your business is fully protected. But, what insurance do businesses need? Below are some of the most common types of coverage.
General Liability Insurance
General liability insurance is crucial for any type of business; even one you run out of your home. Liability insurance protects you and your business from both damages and defense if you, your services or products or your employees cause property damage or bodily injury to a third party.
Workers’ Compensation Insurance
You should add workers’ compensation insurance to your business insurance policy as soon as you hire your first employee. Workers’ comp covers disability, medical treatment, and death benefits if you have an employee who gets an injury or dies due to a work-related incident. Regardless if your employees only perform low-risk work, medical conditions like carpal tunnel syndrome or slip-and-fall injuries can occur leading to an expensive claim.
Business Property Insurance
Business property insurance protects your equipment, furniture, fixtures, and other business-related assets. Normally, it can be rolled right into your general liability insurance so be sure to ask your insurance agent about the details. If your business is conducted out of your home, it’s important to know that you are not necessarily covered by your homeowner’s insurance; therefore you will need to add on additional riders home policy or get a separate business insurance policy.
Product Liability Insurance
Product liability insurance protects you and your business if a defective product causes injury or harm. You may also add product insurance to your general business liability policy as well.
Business Owner’s Policy (BOP)
This policy packages up all the necessary and required coverage you would need as a business owner. BOPs often include:
- Property insurance
- Business interruption insurance
- Liability insurance
- Vehicle coverage
Generally, you’ll save money if you take out a BOP since it bundles up all the coverages and usually costs less than purchasing the individual coverages separately.
These are just some of the types of insurance businesses need today. When going over your basic insurance needs and additional riders, you should consider any risks you have for the location of your business (natural disasters) and the type of business you are insuring. You may benefit from other types of insurance, such as:
employment practices liability insurance
errors and omissions insurance
and more.
Then, sit down with your independent insurance agent to discuss your options to customize a package for your specific business needs.
Complete our online business insurance quote form to obtain multiple business insurance quotes.
