5 Types of Business Insurance You May Need
It’s estimated that 40% of small businesses operate without insurance.
Many business owners find insurance coverage too expensive, not realizing how much a lack of small business insurance could cost them. Unexpected events like a fire or an employee accident could shut down a business for good.
Don’t wait for the unexpected to happen and then wonder what to do next. Be proactive in protecting your business by having adequate insurance.
Here are 5 types of business insurance coverages you may find useful, so keep reading!
1. General Liability Insurance
General liability insurance protects you from claims of harm caused by property damage and personal injury.
And this could be an injury on your property or damage caused by an employee while off-site. General liability insurance can also protect against the damage to a person’s reputation brought on by libel or slander.
Despite how you may feel about the cost of business insurance, general liability insurance is a must-have. Speak with an agent and get a quote from topofinsurance.com to put your mind at ease.
2. Workers’ Compensation Insurance
If your employee slips and falls at work, you’ll be thankful you have workers’ compensation insurance. An unfortunate incident like this could put your employee out of work for an extended period.
And at the same time, they may incur an excessive amount of medical bills.
Not all types of business insurance are mandated but workers’ compensation is often state-required insurance.
It pays for an employee’s lost wages and medical care. And it helps protect your business against a lawsuit, as employees receiving workers’ compensation waive their right to sue.
3. Cyber Liability Insurance
A cyber liability insurance plan helps your business recover from the theft of your customers’ personal information.
Hackers could one day access the names, social security, and credit card data found on your servers. The damage of a cyber-breach can wreak havoc on those individuals and your business reputation.
Some insurance companies help you put the proper safety measures in place as part of your business coverage. But because the least expected can happen, cyber liability insurance exists to help your business recover financially.
4. Business Income Coverage
Business income coverage (BIC) helps ease the pain of anticipated losses from a shutdown or certain other disasters.
BIC, often part of a business owner’s policy (BOP), covers the loss of business income during a time-limited restoration period. Other expenses commonly covered by BIC include mortgage and rent, taxes, and employee wages.
To determine how much business income insurance you need, speak with a qualified insurance representative. Underestimating business income coverage will result in out-of-pocket costs for you as the business owner. And since it could take you longer than the allowed time to recover, you may need to buy an extended BIC policy.
5. Professional Liability Insurance (PLI)
Patients file more than 17,000 medical malpractice lawsuits every year. But don’t get misled into believing only doctors struggle with lawsuits.
If you claim subject matter expertise, any negligence on your part that causes harm to a customer could subject you to a lawsuit. And malpractice isn’t covered under a general liability insurance policy. You must have PLI, often referred to as Error & Omissions (E&O) insurance.
What Types of Business Insurance Do You Need?
The different types of business insurance available can get confusing.
When choosing adequate coverage, it’s not just about which one you need but also how much. When disaster strikes, make sure your business can recover and get up and running in a reasonable time.
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