As a small business owner, you have invested large amounts of time and money to make your business a success. Business insurance protects this investment if unexpected damage to property occurs or lawsuits, which could otherwise devastate to your business. There are many types of insurance available depending upon your business.

Worker’s Compensation Insurance

Workers compensation is required by state law for most employers. It covers the medical expenses and part of the wages of employees who suffer a work-related injury. There could be fines or even criminal penalties if your business does not purchase the required coverage.

General Liability 

General liability is a broad type of insurance that protects small business owners, their businesses, and their employees if a third party is injured by the business’s property, products, or services. It generally covers losses stemming from bodily injury, property damage, medical expenses, advertising injuries such as libel, slander, or misappropriation, and expenses from lawsuits. Additional coverage is usually available, depending upon the particular needs of your business.

Property Insurance

Protects against loss of or damage to the business’s inventory, equipment, office space, and other business property if fire occurs, vandalism, theft, and some weather-related damage. Even if your business is home-based, this coverage is important, as homeowner’s insurance may not cover business losses. Additional coverage should be acquired if your business is in a region prone to natural disasters, as the typical property insurance policy will not cover those events.

Professional Liability

Professional liability also known as errors and omissions or malpractice insurance, protects your business against costs from lawsuits resulting from errors, malpractice, or negligence and is usually obtained by professional service providers such as doctors, lawyers, or architects.

Product Liability  

Product liability protects businesses that manufacture, design, distribute, and sell products against losses stemming from a defective product that causes harm or injury. If a customer sues you after being injured by a defective product, the insurance will cover a damage award to the customer and other costs of defending the lawsuit.

Employment Practices Liability

Employment practices liability insurance protects your business against costs from lawsuits for employment discrimination or wrongful termination claims brought by your employees. This insurance can be especially important for smaller businesses without human resources or legal personnel.

Key Person Insurance 

Key person insurance protects a business against the lost business income that can result if the business owner or a key manager or employee becomes disabled or dies. The proceeds of the insurance can keep the business afloat during the transition to a replacement, and to hire and train the replacement, pay employees, or implement other measures to compensate for the loss.

We Can Help

The business insurance discussed above, among others, can provide essential protection for your business. Failing to obtain the insurance your business needs could ultimately be much more expensive than the cost of the policies. However, determining which types your business needs can be confusing.  Call us today so we can advise you about the best way to protect your business.

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