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Essential Small Business Insurance To Consider
Disclaimer: We make every effort to ensure the accuracy and currency of our information. However, the information presented may differ from what you find when you visit a financial institution, service provider, or product site. We do not provide warranties for any financial products, shopping products, or services. When reviewing offers, please carefully read the terms and conditions of the financial institution. Pre-qualified offers are not binding. If you notice any discrepancies in your credit score or report, please contact TransUnion® directly. Our partners compensate us for featuring their products on our site, and this may affect the products we write about and their placement on the page. However, this does not influence our evaluations, and our opinions remain independent.
Disclaimer: I am not an insurance agency. I am part of an affiliate program, which means I may receive commissions for referring customers to insurance agencies. Please note that my recommendations are based on my personal opinion and research, and you should always do your own due diligence before making any decisions related to insurance.
Running a business can be risky, there is a number of factors that can impact your success. But one of the biggest risks that small business owner face is the potential for legal liability that can arrive from many sources such as accidents, disputes, and other unforeseen events.
To protect themselves from liability business owners should obtain various types of business insurance. Ultimately specific types of small business insurance may need can vary from business to business and to protect themselves business owners should seek qualified insurance agents’ help.
Here are some common insurance small business owners should consider.
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What is business insurance?
Business insurance will be the type of coverage that is designed to protect businesses from financial losses that can result from different risks their industry might have. Business insurance can cover many areas of your company such as liability, property damage, loss of income, and much more.
By obtaining the right business insurance you can help protect yourself and your business from financial loss that can put a huge strain on your company. It’s important to understand the needs of your business and seek help from a qualified insurance agent to find the best coverage for your needs.
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Types of business insurance's
When protecting your business it’s important to consider your insurance needs and get the coverages that will account for your potential risk. While having general liability insurance and property insurance are extremely important there are businesses that might need additional coverage to protect themself.
Also, it’s important to consider state-specific insurance requirements, it’s important to get professional help to make sure you choose the right coverage for your business. But here are some types of business insurance policies:
- General Liability Insurance: General liability insurance will be the type of coverage that will protect businesses from a wide range of potential claims and lawsuits. This insurance usually is focused on three main things such as property damage, bodily injury, and advertising injury.
- Property insurance: This type of insurance is designed to protect your property again claims such as property damage. Property damage can be things such as fires, theft, and natural disasters, this insurance will help you protect yourself in the event that happens.
- Interruption insurance: This type of coverage will provide financial protection to businesses that might not be able to operate because of emergencies or disasters. Having this coverage will help businesses cover expenses and maintain their finances during that period.
- Workers’ compensation insurance: Was designed to proved benefits to employees who are injured or become ill while on the job. This insurance is designed to protect both employees and employers by providing the necessary funds to care for an employee that has received injury.
- Professional liability insurance: Professional liability insurance, also known as errors and omissions insurance, is the type of insurance that provides coverage for professionals’ services against negligence or errors. This type of coverage is designed to provide financial protection to businesses that are at risk of being sued for making mistakes or errors in the course of conducting business, such as doctors or lawyers.
- Cyber liability insurance: A cyber liability insurance can help protect your business from losses due to data breaches, cyber attacks, and other digital threats. In a digital age, businesses will face a number of cyber threats and should make sure they are protected in case of data breaches.
- Employee practices liability insurance (EPLI): EPLI insurance can help business owners against wrongful termination, discrimination, harassment, and other employment related issues. In the complex world, we live in business owners face a growing number of employment-related risks and should protect themself just in case issues arise.
- Commercial auto insurance: This type of coverage helps protect businesses against liability and property damage claims that may arise from accidents involving company vehicles. Having this coverage you’re able to protect a wide range of vehicles such as cars, trucks, vans, and other vehicles.
These would be some of the most common insurance policies business owners will carry, but there are many other options available that range from industry to industry.
It’s important to note that some coverages might apply to you and others might not be necessary. It’s always a good idea to seek professional help in helping you determine the right coverage for your business.
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Business insurance (FAQ)
Is workers' compensation insurance required by law?
In most states, workers' compensation insurance is required by law for businesses that have employees. This type of insurance provides benefits to employees who are injured or become ill while on the job
What is the difference between general liability insurance and professional liability insurance?
General liability insurance covers claims of bodily injury, property damage, and advertising injury. Professional liability insurance, also known as errors and omissions insurance, provides protection for businesses that provide professional services or advice against claims of negligence or errors.
How do I determine what type of insurance my business needs?
The types of insurance your business needs will depend on the nature of the business and the level of risk involved. Working with an experienced insurance agent can help you determine what types of coverage are necessary to protect your business.
Do I need insurance if I am a sole proprietor?
While sole proprietors are not required by law to have insurance, it is still recommended to protect yourself from liability and property damage. In addition, if you have employees, you may be required to carry workers' compensation insurance.
How do I choose an insurance provider?
When choosing an insurance provider, it's important to consider factors such as the provider's experience, reputation, and financial stability. It's also important to compare quotes from multiple providers to ensure you are getting the best coverage at a competitive price.
Disclaimer: We make every effort to ensure the accuracy and currency of our information. However, the information presented may differ from what you find when you visit a financial institution, service provider, or product site. We do not provide warranties for any financial products, shopping products, or services. When reviewing offers, please carefully read the terms and conditions of the financial institution. Pre-qualified offers are not binding. If you notice any discrepancies in your credit score or report, please contact TransUnion® directly. Our partners compensate us for featuring their products on our site, and this may affect the products we write about and their placement on the page. However, this does not influence our evaluations, and our opinions remain independent.
Disclaimer: I am not an insurance agency. I am part of an affiliate program, which means I may receive commissions for referring customers to insurance agencies. Please note that my recommendations are based on my personal opinion and research, and you should always do your own due diligence before making any decisions related to insurance.
