Types of Business Insurance: A Quick Guide for New Owners

The process of starting a new business is filled with important and often difficult decisions. It takes a lot of discernment, determination, and knowledge. Before starting a business, it’s important to do your research on all of the different things you’ll be asked and the choices you’ll need to make.

Getting business insurance is one choice you’ll need to make pretty early on. You need to make sure you’re covered right from the very start in case of an accident or unfortunate event. But out of all of the different types of business insurance, which one is right for you?

This guide aims to help you discover the answer. Read on to find out everything you need to know on the topic now.

The Different Types of Business Insurance

Because there are different kinds of insurance coverage for business, you’ll need to learn a bit about each one and what it entails. This way, you can make an informed decision about which one is best for your business. Depending on what type of business you have, one policy may suit you more than another.

1. General Business Liability Insurance

This type of insurance will cover your business if anyone tries to make a claim of negligence against it. This is the most general type of insurance and something that all companies should have. It will cover the costs of any legal proceedings as well as any settlements you may need to pay.

2. Commercial Property Insurance

This coverage is responsible for the property your business owns. If said property becomes damaged due to things like fire, smoke, wind, or vandalism, then you’ll be reimbursed. There are different types of property insurance for businesses, so it’s worth looking into which one would suit you more.

3. Cyber Liability Insurance

This is a relatively new type of insurance but an important one for all business owners. It helps with the costs of cyberattacks and data breaches. Seeing as many small businesses are affected by cyber threats, this is definitely one to consider.

4. Workers Compensation Insurance

This type of insurance only applies if your business has employees. But if you do have employees, you’ll need to sign up. This insurance pays for work-related illnesses and injuries for employees and in most states, it’s a requirement.

Tips When Shopping for Insurance

When you’re shopping around for different business insurance policies, there are a few things you should be aware of. The first is the difference between a regular insurance company and a captive insurance company.

As well as this, you should be aware that it’s always a good idea to shop around with different vendors to get the best deal. Make sure to do plenty of research.

Make Sure You and Your Business Are Covered

Insurance coverage is such an important thing for a business to have. Make sure you’ve researched all of the different types of business insurance, and you know which ones you need. If you’re looking for more business advice, check out the rest of our content now.