what business insurance do i need

What business insurance do I need? Business insurance protects businesses and their employees from the liabilities they face daily on the job. In some cases, like for businesses with employees, certain coverage may even be legally required. That’s why it’s important to understand the laws in your state and the liability of your business. It’s also important to understand what liability insurance covers so you know which policies are right for your business.

What are the types of business insurance?

Business insurance policies are often grouped into packages tailored to specific industries, such as cleaning or independent contracting. These packages typically include a mix of different types of coverage.

General liability insurance

General liability insurance is an important part of business insurance. It helps protect you from lawsuits filed by people outside your company who claim that your business caused physical harm, damaged property, or harmed a reputation. Every business should have general liability insurance.

General liability is recommended for all small businesses

Most small businesses should have general liability insurance. This type of insurance protects against accidents involving customers, such as injuries, damage to property, or personal injuries. Without this insurance, a business might face high legal and medical costs in the event of an accident with a customer. This coverage is important for all kinds of small businesses, including sole proprietorships, LLCs, and startups, as even accidents with delivery personnel at a home office could lead to lawsuits.

5 Types of Insurance You Need for Your Small Business

Business property insurance is there to assist if something happens, like a fire, that damages your business property. This insurance can cover the physical space and equipment of your business, whether you own or rent it. It’s important to note that in many places, having this insurance is not a legal requirement.
General liability insurance protects your business if someone is injured or their property is damaged. For instance, if a customer is hurt in your store, the insurance can help with their medical expenses. While it’s not usually mandatory, having this coverage is crucial. Without it, you’ll need to personally cover the costs of any liability claims.
Professional liability insurance, also known as errors and omissions insurance, keeps your business safe from claims of mistakes in the services you provide. While it’s usually not legally required, having this insurance is crucial for protecting against errors made by you or your employees at work.
compensation insurance If you get hurt or sick because of your job, workers’ compensation insurance can help you. It pays for your medical care. The rules for this insurance are different in each state, so you should check your state’s rules to make sure you’re doing everything right. If your state requires this insurance and you don’t have it, you might have to pay a fine.
Commercial auto insurance protects your car in case you or your employees have an accident while driving for business. It includes coverage similar to personal car insurance, covering things like repairs, replacement, and medical costs. This insurance is necessary if your business involves employees driving for work.

Professional liability insurance

Professional liability insurance helps protect you if customers or patients try to sue you for mistakes you made while doing your job. It works alongside your general liability coverage by covering events or incidents not included in that policy.

Your business risks determine which other policies you need

The risks your small business might encounter will determine the insurance you need. For example, if your business has valuable property, you should think about getting commercial property insurance. This type of insurance helps protect your physical assets from things like vandalism, natural disasters, and similar events. If your business is in a low-risk industry, you might save money on insurance by combining this coverage with general liability in a business owner’s policy (BOP).

These rules cover your basic risks, but you might need more protection based on your business type, where you are, and what you do.

For instance, if you have employees, most states make it necessary for you to have workers’ compensation insurance. Also, if your business owns vehicles, they must have commercial auto insurance.

Add-On Small Business Insurance Coverages

We make it simple to get more protection for your small business. For instance, adding data breach coverage can help pay for the costs of dealing with a data breach.

Consider getting business income insurance, also called business interruption insurance. This coverage helps replace lost income in case your business can’t operate because of covered property damage.