6 Main Types of Business Insurance You Should Have
Great insurance is something many businesses overlook. It’s tempting to jump straight into a business and figure things out down the line, and that’s one reason why 75% of companies are underinsured.
You can’t afford to get caught off guard when a disaster happens, and you don’t have coverage. That’s why it pays to know the types of business insurance available for your company. Below are six of the most common types of small business insurance you’ll find.
1. General Liability Insurance
General liability insurance is one of the most common types of small business insurance. It’s there to protect you in cases of bodily injury or negligence your visitors suffer on your property.
In general, this insurance is excellent to have for any business. It’s a catch-all that will cover most injury cases.
2. Commercial Property Insurance
The last thing you want when you have a commercial property with a lot of stuff is to suffer damage without protection. While disasters don’t usually happen, there’s always that risk.
Commercial property insurance is for the items on your property. Whether you suffer damage from fire, flooding, or anything else, you’ll get compensation for damages to your commercial property.
3. Product Liability Insurance
Product liability insurance is for those companies that have a product business. You can’t control the environment customers use your products, so there’s always the chance something unexpected happens. While it isn’t common, you still need to have protection.
Product liability protects you if your products injure a customer. It will cover manufacturing defects, design defects, and freak accidents.
4. Business Income Insurance
Unfortunately, most businesses need some kind of infrastructure to make money. While you may get compensation to replace items when they get damaged, you won’t get covered for lost income when you can’t use your equipment.
That’s what business income insurance is for. It will help you take care of regular expenses while you get replacement property to start generating income again.
5. Vehicle Insurance
If your business uses company vehicles, you need insurance for your drivers. It isn’t enough for your drivers to have personal insurance. Your company needs to insure every vehicle you have for your drivers.
Not only is it smart, but it’s also the law in most locations.
Vehicle insurance like Insurance Hub trucking insurance can offer you the coverage you need. It will protect your drivers, vehicles, and cargo.
6. Home Business Insurance
Do you run your business out of your home? If so, standard property insurance doesn’t always cover you for damages. It only covers residential property.
Home business insurance is for those situations. You’ll need to add it to your regular homeowner’s insurance to ensure coverage for your business assets.
There Are More Types of Business Insurance Out There
While the above types of business insurance are a great start, many other business insurance types are out there. Each one has a unique benefit, so your choices will depend on your industry. Familiarize yourself with your current risks and your insurance options to mitigate those risks.
Are you interested in learning more tips that will help you set up your business for success? Head back to the blog for more helpful advice.
