When you start a business, there are many aspects that you need to know and one of them is learning what is the best type of business insurance to have. The purpose of business insurance is to help protect a company’s financial assets, physical property, and intellectual ideas.
Understand Your Needs
There are many resources available for business insurance which can be overwhelming. The first thing you need to find out is how to understand your business’s insurance needs. The needs of your business will depend largely on what your business does, offers, and serves.
Take note of the policies you will need and their costs including, location number of employees, your business’s industry, product inventory, and business style.
Types of Small Business Insurance
General liability is a product all businesses will want to research. They cover many needs such as property damage, advertising injury, third-party physical injury, and other types of liabilities. Businesses should have general liability coverage since they work for any industry and any size of business.
It is legally required your business to have workers’ compensation insurance if your business has employees. Workers’ compensation insurance covers medical expenses of an employee if they have a work-related injury or illness and covers the wages that are lost of that employee who got injured on the job. The rates will depend on the industry of your business and the number of employees.
Commercial Auto Insurance
If your business owns work vehicles that employees or owners use for work purposes, it should have a commercial auto policy. These vehicles can include company cars, vans, or work trucks. This type of insurance will help cover costs in the event a car accident occurs and will help pay for the damages and medical expenses if needed.
Just like personal auto insurance, the price will vary and depend on the location of your business, the amount of coverage needed, and how many vehicles your company uses.
Small Business Insurance
Small business insurance should help protect the property of your company and income. This includes all three types of insurance into one policy including business property insurance, business income insurance, and general liability insurance.
Business Owner’s Policy
A business owner’s policy combines business property and business liability insurance. It can be used in any type of industry but is recommended for store-front retail businesses.
This type of insurance is best if your business focuses on inventory. This policy will insure the business against claims for damages or losses resulting from the products. If your business does not work with physical products, this policy is not needed.
Professional liability insurance protects business owners against claims of financial loss or personal injury.
Unexpected Business Occurrences
There is also a business insurance policy available for any unexpected occurrences. This includes a fire, flood, accident, and more. The insurance will be able to make sure that you are covered in the case any of these business interruptions occur.
The Bottom Line
There are many business insurance policies to consider for your small business so that you are protected. If you are not sure which one best suit you, you can discuss it with your insurance provider or seek advice of other people.