Determining the right level of insurance coverage for your small business is quite a daunting task, especially when you’re new to the business world or the industry your business is a part of. Much like auto, home, and life insurance, business insurance is essential to have when you want peace of mind that your assets will be safe regardless of what difficult circumstances you may encounter. Here are some types of small business insurance policy coverage you should consider for your SMB:
General Liability
Regardless of the type of business you own, it’s important to at least have general liability coverage. This business insurance coverage will help protect you in the event your business is faced with an injury, accident, or negligence lawsuit.
Product Liability
Product liability insurance may not be necessary, depending on the type of small business you own, as this type of policy protects your business in the event there is a defect with one of your products.
Commercial Property Insurance
Much like homeowners insurance, commercial property insurance is essential when your business resides in any type of office or warehouse building. Offering similar coverage to what a home policy does, a commercial property insurance policy offers protection in the face of any type of damage to both the structure of your building and the property housed within, including fire, theft, vandalism, and even goes so far as to cover a breakdown in your computer system.
Business Interruption Insurance
Another insurance policy that’s essential to have is business interruption insurance, which offers aid in the event that your business must close for any period of time as the result of a disaster, such as a fire in your building, flooding, or any type of natural occurrence.
Professional Liability Insurance
To ensure you and your business are protected even in the most difficult legal circumstances, you should consider investing in professional liability insurance. This type of insurance covers legal costs up to a certain limit if your business is sued for any reason, like breach of contract, negligence, or misrepresentation, all of which can be very costly even when the claims are unfounded.
Commercial Vehicle
Commercial vehicle insurance is necessary to maintain when you use a vehicle used for business purposes. This insurance protects your vehicle if you’re involved in an accident, and offers protection if you or your employees are responsible for the accident since your regular auto insurance will not cover these instances.
Information Breach Protection
So many elements of business are internet-based nowadays, leaving your small business vulnerable to information breach and hacking. Your business can benefit from the coverage of an information breach protection policy in case your system and digital files are compromised and any personal or customer information is stolen as a result.
Other Types Of SMB Insurance Policies To Consider
If you employ anyone at your small business, here are four additional business insurance policies to consider:
- Workers Compensation Insurance
- Malpractice Insurance
- Group Health Insurance
- Unemployment Insurance
- Disability Insurance
- Life Insurance
Ensure Your Have The Right Small Business Insurance
Is your business fully protected? Maintaining proper insurance coverage is the only guarantee that your small business will be safe no matter what life throws at you. Is your business insurance offering you the best coverage for your needs?
I hope you enjoyed this article about the right types of insurance coverage for you and your small business protection needs.
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