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Kinds of Insurance Every Small Business Needs

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Do you think your business doesn’t really need insurance? Think again. Over a 10-year period, 40% of businesses end up filing an insurance claim of some kind. Don’t risk being unprotected when the unthinkable happens.

So, what kinds of insurance does your business need? We’re glad you asked! Continue reading this brief guide to learn about the most important types of small business insurance to consider.

Workers Compensation

The simple fact of the matter is that if you have employees, you need workers compensation insurance. This coverage will provide the following benefits to your employees if they are hurt on the job:

  • Coverage for lost wages
  • Coverage for medical bills
  • Coverage for ongoing medical care
  • Coverage for funeral costs if they lose their life on the job

In most states, you’re required to have workers comp coverage and can face fines if you don’t have it. Learn more by browsing workers comp carriers today.

General Liability

Another important business insurance to have is general liability coverage. This protects your business against claims if non-employees suffer bodily injuries or damage to their personal property while onsite at your business.

This coverage also protects your business against libel and slander claims.

Commercial Property

If you have a physical location for your business, you need commercial property insurance for protection. This is applicable whether you own or lease your business’s building. Commercial property insurance will cover the physical location of your business as well as equipment inside and outside the business. This includes furniture, computers, signage, etc.

While events like theft and vandalism are protected under this policy, it does not cover damage from floods. You’ll need to get commercial flood insurance if you want protection from those types of claims.

Commercial Auto

Does your small business have a fleet of company vehicles? If the answer is yes, then you should have a commercial auto insurance policy. This coverage will protect your employees when they’re on the road driving company vehicles. This type of policy includes coverage for the following:

  • Property damage from a car accident
  • Bodily injury claims from a car accident

This type of insurance coverage is important because personal auto insurance policies typically won’t cover any driving done in business vehicles.

Data Breach

Finally, if your business keeps records of sensitive, personal information, it’s worth it to get data breach insurance. In the event of a data breach, this policy will help cover the following costs:

  • Notifying individuals about the breach
  • Public relations campaigns in the aftermath
  • Theft monitoring services for your customers

When shopping around for this coverage, please note that some carriers call it cyber insurance.

Get the Right Kinds of Insurance for Your Business

Now that you know more about the most important kinds of insurance your business needs, it’s time to start shopping for coverage. While it might feel like an “unnecessary” expense now, you’ll be more than happy to have it should the time come to file a claim.

Want to read more business-focused content like this? Browse through our other articles today!

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