Are You Covered? The Types of Insurance Every Small Business Needs

Do you need insurance to protect your small business from costly, or even potentially devastating, unforeseen circumstances?

The answer is “yes” – and you probably already know that. But, you may still be scratching your head and wondering exactly what types of insurance are “must haves” for your company.

There’s no “one size fits all” answer. The specific types of business insurance coverage you need depend on what your company does and on the state where you are located. But, there’s no doubt that you need to get it right – and keep it that way. Because without the right insurance, you could end up paying out of pocket for any claims that arise. And that could be a death knell for some small businesses.  

Types of Insurance to Consider

Getting the right business coverage is not unlike protecting your home with homeowners insurance. They’re both among the most important investments you’ll ever make. Obtaining the right insurance for your company may mean purchasing:

• General liability insurance: for protection against the costs of bodily injury or property damages. You may want to consider a policy that includes product liability insurance as well, in case there are claims against injury or damage caused by your products.
• Business property insurance: to guard against expenses related to your physical facility, tools, equipment, furnishings or inventory.
• Business income insurance: to replace lost earnings when company is unable to operate due to a covered loss such as a theft, fire or flood. This is also known as business interruption insurance.
• Workers’ compensation insurance: This is required in most states. It provides benefits to employees for work-related injuries or illnesses.
• Commercial auto insurance: to pay for expenses from covered, work-related auto accidents if you or your employees use a vehicle on the job.
• Professional liability insurance: This helps protect your company against claims that your professional services or advice caused a client financial harm. It’s also knows as errors and omissions (E&O) insurance.
• Data breach insurance: This helps cover liability costs and identity protection solutions, as well as related legal and public relations fees if your business suffers a data leak or cyberattack. Some insurers call it cyber liability insurance.
• Commercial umbrella insurance: This insurance extends the limits of certain liability policies so that, if a claims cost exceeds your policy’s limits, it helps cover the difference.
• A business owner’s policy (BOP): This combines general liability, commercial property and business income insurance, making it a popular option for many companies.

Need Help With Human Resource Services?

To learn more about the business insurance you need to protect your company, contact Key HR today. We’ll help make it easy to customize this and all your other business and HR needs.