Are you opening a business soon? Do you have a lot of questions that you still don’t have answers to? Is one of your questions, “do I need business insurance?” If the answer is yes, this is the guide for you. Keep reading to learn the importance of having business insurance and the different types.
The Importance of Business Insurance
Do I need business insurance? The answer is yes and for a variety of reasons!
Accidents at work can happen at any time. When they do, business insurance can help you pay for damages so you don’t have to pay them out of pocket.
Here are the top reasons for insurance coverage:
- It’s required by law
- Protects your employees
- Protects your customers
- Builds credibility
- Helps recruit and retain employees
- Protects management
- Protects against natural disasters
- Helps with lawsuits
You’ll have peace of mind knowing you are protected in a variety of ways with the right business insurance.
Choose the Insurance You Need
What kind of insurance do I need? This is the next question to ask yourself.
Small business insurance coverage fills the gaps that aren’t protected from the business structure that you choose.
The federal government requires that you have disability insurance, unemployment, and workers’ compensation. Your state may also require additional insurance.
In general, there are six common types of business insurance to choose from. You might get one, a few, or all types depending on your company.
The ones we will discuss are:
- General liability insurance
- Product liability insurance
- Professional liability insurance
- Commercial property insurance
- Home-based business insurance
- Business owner’s policy
Let’s go into detail about each of them.
General Liability Insurance
Any business can get this insurance plan for protection from financial loss due to property damage, bodily injury, settlements, defending lawsuits, and medical expenses.
You can find this coverage in an
alliance plan.
Product Liability Insurance
Product liability insurance is necessary for those that retail a product. It protects against financial loss if you have a defective product that causes bodily harm.
Professional Liability Insurance
Any business that provides a service to its customers can benefit from professional liability insurance. It protects against financial loss against errors, negligence, and malpractice.
Commercial Property Insurance
If your property has a significant amount of physical assets, this coverage is a good idea. It covers loss of property due to events like wind, fire, smoke, and hail.
Home-Based Business Insurance
If your business is run out of your home, this is the coverage for you. It is added to homeowner’s insurance to further protect business equipment and third-party injuries.
This is a common plan because
50% of all small businesses are operated from home.
Business Owner’s Policy
This insurance coverage is beneficial for most small business owners but especially home-based businesses.
This is an insurance package that combines typical coverage options into one bundle. It can save money by simplifying the insurance buying process.
Do I Need Business Insurance? (Yes!)
So, do I need business insurance? The simple answer is yes!
Every business is required to have certain policies but you should consider additional coverages. With this guide, you’ll have the information you need to choose the right coverage for your company.
For more articles on business, check out the other posts on our blog.