If you are wondering if you need business insurance, you definitely do. Covering your small business will protect it from risk. There are various insurance options for small businesses worth considering. We will highlight them in this article.
Common Types of Small Business Insurance
The most common small business insurance options include the following;
· Commercial auto coverage
· Worker’s compensation coverage
· General liability coverage
Aside from capital used and effort put in running your small business, there are also essential tools and equipment you need to protect. And that’s where insurance comes in. Some insurance coverage can protect your business tools. If you are not sure about the best coverage for your business, you can engage insurance experts to advise you on the right coverage for your business.
Small Business Insurance Options
Commercial property insurance
This type of insurance aims to protect the physical location of your business and other items such as tools, inventory, equipment, and furniture. For instance, if you happen to lose your business to fire, this type of insurance can protect your property.
Business income coverage
Business income coverage replaces income lost from wind damage, theft, fire, among other losses. For example, if your restaurant is shut down temporarily due to theft, business income insurance can repay your lost income.
Workers’ compensation coverage
If your employees sustain injuries in the workplace, they can be compensated if you have worker’s compensation insurance. This type of insurance takes care of medical care, disability benefits, funeral expenses, and lost wages in cases where your employees need some time off to heal.
If your small business involves handling heavy boxes or sharp objects, worker’s compensation insurance can make all the difference. That’s because it will cater to your employee’s medical treatment.
General liability insurance
This kind of insurance protects small businesses from property damage and bodily injury claims. Furthermore, it can cover slander and libel claims. For instance, if a client happens to slip and fall within your business premises, this insurance can cater to their medical bills. But without this coverage, you’ll be forced to pay your client’s medical costs from your pocket.
Commercial Auto Insurance
If your company has employed some drivers, it is necessary that you have commercial auto coverage. This policy covers auto accidents in case you or the workers are at fault. For instance, if your employee is using your firm’s van to do deliveries and in the process causes an accident, this coverage can cater for the damages. This is the most suitable insurance if your business has the following;
· Employees using company vehicles
· Rent, lease, or own vehicles
· Have employees who drive rented, owned, or leased company vehicles
Data Breach Insurance
Data breach insurance protects client’s confidential information from hackers. With the increase in online shopping, customers are required to provide personal information. Unfortunately, such data is prone to hacking, thanks to the rise in cybercrime. You can protect your customer’s data if you have data breach insurance.