Top 10 Essential Insurance Policies for Small Businesses

Small businesses start strong, but more resources are needed to support them when things go downhill. This is one of the reasons many small business owners are hesitant to take new steps or need clarification on what to do next.

If you are a small business owner looking to expand but need security, we highly recommend purchasing insurance. Need help choosing an insurance policy? We have rounded up the top 10 small business insurance policies for you—lower panel.

 

The 10 Most Important Insurances for Small Businesses

Here are the top 10 insurance policies small businesses can choose from:

1. General Liability Insurance

General liability insurance is a type of insurance that covers property damage or bodily injury to other people in your business. This means that if someone visiting your company's premises slips and is injured or one of your shipments is damaged, the insurance will be a way to cover their injury or medical expenses on behalf of the company. It makes sense to purchase general liability insurance because some situations can happen without notice. Therefore, buying insurance rather than withdrawing money from expenses to cover losses is always advisable.

2. Professional Liability Insurance

Professional indemnity insurance, or fault and omission coverage, is another excellent policy we highly recommend for small businesses. When small businesses are new to the corporate or business world, they often need to correct their mistakes as they go through multiple processes. So when a part of your company inadvertently causes trouble for a customer, they sue you. This insurance can cover your legal costs of dealing with the matter in court.

3. Commercial property insurance

Small businesses invest a lot of capital to become what they are today, so protecting their structure and everyone involved is always critical. It cannot be denied that unexpected environmental changes such as heavy rain, lightning, and earthquakes can destroy even the most vital foundations. Therefore, to protect your premises and goods from all these situations, it is always essential to have commercial property insurance for your small business.

4. Business Interruption Revenue

It cannot be denied that once a fire or heavy rain hits and damages a business or theft causes a business to lose its goods, it is not immediately possible to return to business. Companies often have to move to new locations or return goods. During this period, companies must also temporarily close to resolve any issues.

Business interruption income is an insurance claim that makes sense in these circumstances. This will allow the company to recover lost profits, damaged goods, and other additional costs.

5. Business Owners Guide

A business owner's policy can be one of the best insurance options for your business. Why this? The Entrepreneur's policy is not an individual insurance policy but a bundle of three different insurance policies. This specialty coverage combines general liability, commercial property, and business interruption coverage. Not only are these three policies the best for any running business, but the cost of purchasing all three policies in the BOP category is relatively low.

 

6. Work injury insurance

There is no denying that employees are a company's most valuable asset. Therefore, the company is responsible for taking care of them. If your employee gets sick or injured on the job, the company should cover the cost of treatment and expenses. In this case, purchasing occupational accident insurance is a good idea. This insurance helps you pay for medical expenses during your employee's treatment.

7. Commercial Auto Insurance

Small businesses often have company-owned vehicles driven by company employees. Accidents involving these company vehicles damage the car and workers, and the person driving it is injured. Commercial auto insurance will help easily cover workers' medical bills and vehicle damage. If you do not have this insurance, you will be responsible for paying the cost out of pocket.

8. Commercial umbrella insurance

This particular insurance policy is one of the best insurance you can choose. This is because sometimes your claim exceeds the reimbursement amount that your desired insurance policy is willing to pay. Commercial umbrella insurance can ideally make up the difference made by cost overruns. In a genuine sense, it's an umbrella that protects your business from storms.

9. Cyber Liability Insurance

We live in a technological world, and operating multiple technological devices makes our jobs easier. However, the technology of this world has not only made our jobs more accessible, but it has also made data breaches easier. If your company's data is stolen and one of your customer's information is compromised, they will most likely sue you. Purchasing cyber liability insurance is critical to ensuring that you can cover legal costs and reimbursement costs.

10. Employment Liability Insurance

Business liability insurance supports companies to cover claims under labor law. Occasionally, employees at your company may face sexual harassment, discrimination, or wrongful termination. One aspect that companies should consider is ensuring proper compensation for such issues.

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Starting a small business takes a lot of hard work and dedication. Therefore, you should always protect the company and keep it running forever. With the above ten insurances, your business will run smoothly and be protected from many unforeseen events.