What Kind of Business Insurance Do I Need?

As a business owner, protecting your investment is a major concern. That starts with having the right kind of insurance that will keep you covered in the event of unexpected circumstances. Depending on the type of business you have, there are a number of insurance coverage options that may apply to you. For those who are working on a smaller scale, business insurance is just as important, especially as you grow.

Even if you have an LLC, which offers limited protections, going the additional step in acquiring business insurance can assist when facing lawsuits and personal liability concerns. Understanding four major types of insurance coverages available will help you make a better decision on choosing the right coverage for you:

General Liability

This will cover your business in the event someone gets hurt, there is any property damage, slander against your business, whether you need an attorney, and more. When considering general liability, there are additional add-ons you can attach to your policy which meets your needs.

Property

If you have any equipment or buildings, you will need property insurance to cover them in the event of a fire, inclement weather hazards, theft, and other unexpected occurrences. This is very important to have if you have invested in large machinery, multiple locations, and have data that could jeopardize the operations of your business if lost or damaged.

Commercial Auto

Driving your vehicle for work? Do you have any employees driving for the business that deliver or carry equipment or products? You’ll need commercial auto insurance to cover the vehicles and employees driving them. If your employees are driving their own cars, you should have a non-owned auto liability policy in place.

Business Owner Policy

A business owner policy rolls a number of coverages into one, saving time and money. This type of policy usually includes property insurance, liability insurance, vehicle coverage, business interruption insurance and other coverages that are specific to your needs. This type of policy is usually more cost-effective than having a number of separate insurance policies.

Worker’s Compensation

Although some states do not require business owners to carry this, worker’s compensation will cover any employees that are injured on the job. It helps provide wage replacement and positions you as an employer that cares about their employees. It also protects your business in the event of a lawsuit due to negligence.

Professional Liability

If you work in professional services, this is definitely a policy that would work in your favor. This type of insurance protects you against any slander or disgruntled clients that feel they did not receive the service they deserved. This is also called errors and omissions insurance and is not covered under the general liability umbrella.

These types of policies are all beneficial to a business owner and will help protect their interests form top to bottom. Not having insurance in place could be detrimental, especially when you really need it. Speaking to an insurance professional can help make the right decision in choosing the type of insurance for your business that will be most cost-effective and protect the interests of your company and employees.

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