What insurance do small businesses need? This is a commonly asked question with no simple answer. That’s because the type of company insurance you need depends on your industry and state. As such, you must obtain appropriate coverage in order to comply with state rules.
If you don’t have the right small business insurance, you may have to pay for claims. Many small businesses cannot afford to cover claims and may fail in the long run. That’s why small company insurance is an essential investment.
The following are the seven common types of insurance required for small companies:
1. Commercial General Liability Insurance
Commercial General Liability Insurance is a must for any small business, as it protects from claims brought by clients and third parties for bodily injury or property damage.
It is the most basic form of small business insurance for several reasons. It covers you in case of an accident on your premises and when you’re on the job. Moreover, it protects you if a customer has an accident on your premises.
2. Commercial Auto Insurance
As a small business owner, you are responsible for your business’s vehicle, even if you own the car. Commercial auto insurance is a must-have form of small business insurance.
Commercial auto insurance will cover the losses incurred by your company in the event of an accident involving your company-owned vehicle. In most instances, you will get this coverage as a part of a commercial package.
3. Employee Benefits Insurance
Employee benefits insurance is a form of insurance that covers your employees’ health, life, and disability. Most small businesses with five or fewer employees are eligible for this coverage, but you must choose an insurer that will cover small firms to get it.
The most significant feature of employee benefits insurance is that it covers your employees and you because you have broad risk exposure if you have employees. A common type of this insurance is workers’ compensation.
4. General Liability Insurance
General liability insurance covers you for liabilities arising from bodily injury or property damage claims. Like its commercial general liability counterpart, this insurance policy is critical for small businesses of all types.
It covers the expenses stemming from legal action, lawsuits, or claims brought against your firm. General Liability Insurance will also cover your business if another entity takes legal action against you.
5. Workers’ Compensation Insurance
Workers’ compensation is an insurance policy designed to cover the medical expenses and lost wages of employees who are injured on the job.
Workers’ compensation in your small business will compensate you for employee medical bills and missed income. This type of insurance is also required in every state.
6. Business Property Insurance
Business property insurance is the insurance policy that protects the assets of a small business. As a business owner, you are responsible for the damages to your firm should a hazard hit.
If a destructive natural disaster hits your firm, for example, a tornado, fire, or flood, business property insurance will cover the damages on behalf of your firm.
7. Insurance for Business Interruption
Business Interruption Insurance is often used by firms of all sizes to help protect themselves against losses if they temporarily cease operations due to damage, destruction, or disaster.
Small business insurance is vital to keep your firm moving forward, no matter what happens. It helps you keep paying bills or create income amid business disruptions, like a pandemic lockdown, for instance. This way, you can be assured that your business will be able to thrive amidst difficulties and the unexpected in business.
Conclusion
Most small business owners do not realize the extreme importance of small business insurance. There is this vital need to acquire proper small business insurance to protect your assets and enable you to grow your business.
If you’re interested in getting a small business insurance plan, contact Quesurance. We are licensed in Florida, New Jersey, Pennsylvania, South Carolina, Texas, Virginia, Wisconsin. Contact us now to get a free no-obligation quote!
