Getting the right kind of business insurance is important. It can help you to safeguard against a drop in sales, natural disasters and even unforeseen crises. The types of insurance for your business and the right type of insurance coverage is just as important as the goods and services you sell. He told us what’s important to get.

 

Choosing the right type of insurance requires knowing exactly what you need.

 

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Types of Business Insurance your Operation Needs

Below is a list of the different types of insurances for your business. It’s a good starting point when you’re looking to find the right policy to insure your business. Having an expert on your side is a good way to decide which of these policies is best for your particular business.

Depending on your industry, you might need more of one kind of coverage than another.

First, I’ll explain what a startup needs.

Startups definitely need business insurance. Depending on your business, you may need a myriad of insurance policies. A BOP policy is a great starting point because it includes the coverage of General Liability (bodily injury and property damage) and Business Property. He says a startup will also need Workers Compensation and other forms of insurance.

 

Types of Business Insurance

Getting the right types of Insurance coverage for your business protects your enterprise from any kind of business interruption. There is insurance for businesses to cover everything from employees to the property the company is on. These cover everything from property damage to certain other situations. It’s important to consider your options here if you live in a flood zone or an area prone to fires. Some of these types of natural disasters can hamper your ability to make money.

 

Property

Commercial property insurance is important for a business. It doesn’t matter whether you’re looking to insure business property that is in your home or an office building. This type of insurance for business protects things like office furniture and equipment inside. Look for a policy that protects things outside like the signs on your property. Property insurance is one of the cornerstones any business needs. It’s a necessary coverage.

 

Business Owners Policy (BOP)

This type of policy can be paired with general liability and business property insurance. It’s good for Business Owners who rent a space and have equipment in it. It’s also good for Business Owners with employees that could act dishonestly or steal clients’ property, or who have business equipment such as computers, printers and furniture.

 

General Liability

General liability helps cover medical expenses and legal fees resulting from bodily injuries and other issues for which your business may be legally responsible. It can also protect employees with a personal injury clause that covers property damage. This type of policy can also cover defamation and slander. It’s a coverage you’ll need to have and a type of insurance your business can’t do without. Liability insurance is important for any business. Covering your legal costs is an important part of staying afloat. This is the type of policy that takes a lot of the worry off your chest as a Business Owner.

 

Professional Liability / Errors and Omissions

Your business needs to have liability insurance. Business Owners need to cover all of the bases. This type of policy is also known as errors and omissions policy. As far as insurances for business goes, this is another must-have. For what this professional liability insurance does for a Small Business, it is also known as Errors & Omissions insurance (E&O) protects a business against claims of negligence, failed services, or incomplete services.

It’s an important part of your business insurance toolkit. Covering all the angles if you especially live in a place prone to natural disasters is important.

 

Workers Compensation

A business also needs to look at getting Workers’ compensation insurance. It’s important Business Owners make sure they are covered with this policy. It’s often state-mandated.

Accidents do happen, so your employees will receive financial coverage for missed wages and medical expenses for any unfortunate mishaps that occur at work. Business Owners can look at it as a type of liability insurance. In some cases, it can protect your company from lawsuits for workplace conditions that are alleged to cause harm.

This is especially important coverage, considering the different types of Insurance coverage for your business, if you’re a contractor. Many of your clients will want to be sure you covered this angle. Homeowners don’t want to be worried about the liability involved if you don’t have this coverage.

 

Cyber Insurance

Cyber insurance protects your business from malware, cyber attacks and data loss – very real threats to every business. If your business does anything online, then may want to look into cyber insurance. There are a few types involved here. Make sure any policy you are looking for covers processing credit cards and accepting digital payments as well as storing confidential information.

There are different types of business insurance under this topic. Look for a policy that covers financial data too. Keep in mind cyber-criminals are always inventing new ways to steal your data. There can be legal consequences if you are not covered with this type of insurance for a business and data or personal information is stolen.

 

Unemployment Insurance

This is important when you want to look after employees. This insurance is a great incentive in a tight labor market. A policy that offers supplemental coverage can help you attract employees. Having a benefits package that includes this can help you stay ahead of the competition. It’s a good bonus to have in today’s highly competitive markets.

 

Business Interruption

A flexible business needs to be ready with an interruption insurance policy. This coverage can look after a commercial property or even supply coverage for a home-based business. This insurance helps replace any income lost if you cannot open your business for a period of time. Unfortunately, this business insurance doesn’t cover viruses or quarantines and travel bans. That’s an important consideration for interruption insurance.

 

Directors and Officers

There are other business insurances designed for management. This insurance is designed for a company’s directors, officers and board members. There are some specific examples where this policy is important. This policy is needed if you have a board of directors, wish to attract and retain senior leadership and are a non-profit.

 

Umbrella Insurance

This adds an additional layer of protection to your existing liability coverage, protecting your business from things that might not be covered under your standard policy such as legal fees, medical bills and damage expenses. Regardless of the type of business you’re in, this insurance adds an extra layer of protection. You want to look at coverage from every possible angle.

 

Life Insurance / Key Person

This is important if an important employee or Business Owner is unable to work or has become disabled. It’s about business continuity and pays out to a key person.

 

Health Insurance

Health insurance is important for attracting employees. However, it doesn’t do anything to protect the business. And, it is a great idea to seek the help of a Broker, instead of an Agent or Representative of one particular carrier. They will work for YOU, instead of the carrier.

 

Other Types

It’s important to consider property insurance and other types that might be specific to your industry. Commercial Auto insurance protects your vehicles and employees on the road and covers any mishaps involving vehicles driven by you or your employees during the course of business. This insurance is great for anyone that uses a vehicle for business purposes.