As a successful small business owner or manager, you already know that your company takes risks every day. However, the right package of commercial insurance policies can protect your business and your livelihood from common threats and hazards. In fact, business insurance can be an affordable tool to help you manage risks, reduce stress and even become more profitable.
Basic Types of Commercial Insurance for Small Businesses
The Small Business Administration recommends considering a business owner’s policy (BOP). This offers a package of common commercial coverage types, and it usually costs less to purchase insurance this way than to buy each policy separately. A typical BOP includes property, general liability, commercial vehicle and business interruption. This may not be enough to cover the unique risks that your company faces, but we can help you assess those risks and recommend the right coverage.
Today’s companies always face the threat that somebody will claim that an owner or employee injured or damaged them. Typically, general liability covers injuries, damages, medical bills, libel, slander, the cost of defending lawsuits and settlement bonds or judgments.
Typical property policies cover business property against losses because of common hazards like fire, wind and vandalism. Note that you may need to add additional flood insurance in case your business is damaged by flood waters from a natural incident.
Many small business owners, especially home-based business owners, rely upon their personal policies to cover their cars even if they use them for business frequently. Some business owners even lend their vehicles to employees for business use. Typical personal car insurance is not adequate to protect a business, and the limits might be too low to insure the value of supplies, equipment and inventory that these vehicles transport.
Product Liability Insurance
If you make or even distribute products, you could be liable if a defective product causes injury or property damage. This coverage protects your business against any financial losses from claims.
Business Interruption Insurance
If a storm or fire were to put you out of business for several weeks, would you be able to service debt and pay yourself and your employees? This coverage can insure you against losses if you need to close your doors for a while.
Is There Other Business Insurance You Might Need?
Depending upon your unique business, you may need additional kinds of coverage.
- If you are a professional, like a lawyer, doctor or insurance agent, you might need professional liability insurance. Examples are malpractice and E&O.
- More companies are considering cyber insurance to protect themselves against hackers and data theft.
- You may also need workers compensation and health insurance for your employees.
- Some business owners have found that a good package of employee benefits that includes health, life and disability insurance can help attract and retain good people.
- Specialty insurance policies can protect unique businesses against a variety of threats.
We can help simplify coverage and find you an affordable package of protection. Contact us at your earliest convenience to schedule an appointment with one of our experienced commercial insurance agents. Tell us about your business, and we can tell you how to protect it.
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