Different types of business insurance to protect your business

Getting the correct business insurance to protect your small business can mean all the difference. From protecting your fleet of vehicles on the road to the building the business is in, having the right protection can be the difference between shutting the doors early or surviving financial ruin. 

From the first day you start the business you take on risk. This can happen even before your first employee is hired. Business and risk go hand in hand which makes having the right coverage very important. Literally one sizable lawsuit can wipe out a business before it gets off the ground running. 

The good thing is there are various ways you can protect your business from risk. In this article we go over some of the more common ways to protect your business with commercial insurance.

Professional liability insurance

Often referred to as errors and omissions insurance (E&O), professional liability insurance will help to protect your business against negligence claims due to harm from mistakes your business may have created. Each industry has their own unique risks and concerns, so it isn’t a one policy fits all type of business insurance. Each policy will be written and customized to the companies individual needs. 

Commercial property insurance

Business property insurance is a must have whether you rent or own the property. Commercial property insurance covers equipment, signage, inventory and furniture. It will protect your company from covered perils such as a fire, storm and theft. Some events are not covered under a standard policy like earthquakes and flooding. If you believe your business will be at risk to these types of events, you will need to look into separate insurance to get adequate coverage.

Workers compensation insurance

If you have at least one employee, you may be required to carry workers compensation insurance. Often referred to as workers comp insurance, this coverage will cover medical treatments, disability and death benefits. You and your employees will receive coverage in the event someone becomes sick or injured on the job. 

Home based businesses

Most small businesses are created initially in a home as a home based business. The only issue is most regular homeowners insurance policies will not cover you for business risks. If you have a home based businesses you may want to speak to an agent to see what is and isn’t covered. 

Product liability insurance

If you run a business that that manufactures products for sale to the general market, it’s a good idea to carry product liability insurance. This is important coverage even if your business has safe business practices in place. There’s always a chance you can run into a lawsuit of legal issue due to the products you sell. Product liability insurance will work to protect your company if you’re getting sued or end up in a legal dispute. 

Commercial auto insurance 

If your business has vehicles that are needed for day to day operations commercial vehicle insurance is very important if you want to be fully protected. At a minimum you should obtain coverage for liability if one of your employees is to get into an accident. 

Business interruption insurance

If there happens to be a disaster or major event that does happen, business operations could come to a halt. In times like these business income can suffer greatly. This can affect sales goals from the inability of staff being able to work. Business interruption insurance is very valuable to businesses that require a physical location to do business. For example retail stores or businesses that take in customers. Business interruptions insurance can help to compensate for the losses that may occur. 

Cyber insurance

Data protection insurance, often referred to as cyber insurance is designed to protect a business from a possible breach or cyber attack. These concerns are becoming more and more common. If your business has a website or stores data, cyber insurance is a must. 

There are many forms of business insurance and putting together the right package to protect your business is very important. A Beacon Business Insurance we work very closely with our clients to ensure their risks are covered. Please give us a call today for a free business insurance quote at 916-273-8391