There are many types of insurance options available nowadays for business owners. Insurance helps them safeguard their business from various threats that come along with running a successful business. And sometimes it becomes a little tough to choose the right insurance, but we are here for you .
We are here to help and describe to you the best insurance one business should have for sure, which helps in the smooth running of their business.
If you are unaware of market demands, then you should go for the Business Owners Policy, like many others do. It is mainly for small business insurance, and it covers three basic things.
General liability insurance
Commercial property insurance
Business income insurance
A bop can also be customized, so one can add further insurance for the extra safety of their business. For example, if you have a business that offers professional service to customers, you can have a professional liability insurance policy. It will help protect your business from claims that it made a mistake in the professional services provided.
Each business is different, and so are everyone’s needs. And this is the reason we are suggesting an insurance policy that perfectly suits your business needs. You need to have different insurance policies in order to tackle the ongoing market situation. And the sole reason behind this is that every business faces different situations and threats.
These are the different types of insurance you should have as a small business so as to ensure your safety in the long run.
1. General Liability Insurance (GLI)
General liability insurance helps protect our business from claims that it caused something like this:
Bodily injury to a person
Property damage to some people’s belongings
Personal injury, like libel or slander
2. Commercial Property Insurance
Commercial property insurance helps you protect your owned or rented building and the equipment that you use to run your business.
But this insurance won’t cover any damage from earthquakes or floods. For that, you need to have a different policy, for example, commercial flood insurance, to keep your business safe from these types of claims.
3. Business Income Insurance
If you are unable to do your business due to the covered property damage, then business income insurance will surely help you replace your lost income. This coverage can be used to help you pay for your expenses, like rent, utility bills, or payroll. This type of insurance is also called business interruption insurance.
4. Professional Liability Insurance
Professional liability insurance helps you cover lawsuits that claim that you have made a blunder in the services you offer. This type of insurance is also called error and omission (E&O) insurance.
5. Workers’ Compensation Insurance
Workers’ compensation insurance provides benefits to your workers if they are hurt or get sick at their job. These benefits can help:
Paying for their medical bills
Replacing most of their lost wages if they miss work to recover
Cover their funeral costs if they lose their life due to a work-related injury or illness.
Pay for ongoing care, like physical therapy.
The laws tell businesses with employees to carry workers’ compensation insurance. You can face fines, penalties, and criminal charges if you don’t comply with the law.
6. Data Breach Insurance
Data breach insurance helps your business react to a data breach if any of the personally identifiable information gets lost or stolen. Some people also call this coverage cyber insurance.
Data breach insurance will help you pay your costs to:
Notify impacted people
Offer identity theft monitoring services.
Create a public relations campaign.
7. Commercial Umbrella Insurance
Commercial umbrella insurance extends your coverage limits for some of the liability policies. So, in case a claim exceeds the limits of your policy, your umbrella insurance will help you cover the difference.
8. Commercial Auto Insurance
Commercial auto insurance helps protect you and your employees on the road if you drive company-owned vehicles for your business. It will also help you cover property damage and bodily injury claims from an accident caused by your business. This is important because a personal car insurance policy will not help cover third-party claims in an accident you cause with a business-owned vehicle.