Small Business Insurance 101: What Types of Business Insurance Do I Need?

Small Business Insurance 101: What Types of Business Insurance Do I Need?As a small business owner, having the right insurance coverage will ensure that you are protected and enjoy continued success.

No matter how large or small your operation, insuring your business and protecting your assets is one of the most crucial decisions you will make. Not all insurance is required by law, but it is wise to cover yourself and your employees should an accident happen.

Here are the main types of business insurance you should consider:

  1. General liability insurance. This coverage protects you in the event you are sued because of damage, injuries or claims of negligence made against your employees, products or services.
  2. Product liability insurance. This coverage protects you in the case your products are defective and cause injury or damage to others.
  3. Professional liability insurance. Also known as Errors and Omissions Insurance, this coverage protects service-based companies against claims of error, damage, or improperly rendering services.
  4. Commercial property insurance. This coverage protects property such as equipment, computers and inventory from disasters like theft, vandalism or fire.
  5. Data breach coverage. This coverage protects you against any legal or other costs associated with the theft or accidental release of sensitive personal information of employees, clients or customers.
  6. Commercial auto insurance. This liability coverage protects your company’s vehicles against collision and damage.
  7. Worker’s compensation. This type of insurance provides wages and medical benefits to employees insured on the job, and protects you from being sued for the incident. As a business with employees, you are required to pay unemployment insurance taxes.

You may also want to consider protection from crimes, damaging actions of directors and officers, or loss of earning in the event your business is unable to operate.

Have a conversation with your insurance agent about your individual business insurance needs. Contact the experts at H&K Insurance to determine the best way to protect your business.