Most small business owners have a good idea of what tools, equipment and materials are needed to conduct their business. However, when it comes to insurance, they don’t always know what to insure or how much coverage they require.
At the very least, consider buying General Liability and Business Property insurance for your small business. Or you can get a Small Business Owner’s Policy (BOP) that contains both under a single policy. In most places, Worker’s Compensation insurance is a necessity. If you or your employees will be driving for work purposes, then you will need Commercial Auto Insurance.
Once you have these basics covered, consider any risks that are unique to your business. Is your area prone to flooding? Are you handling large amounts of customer data? You will want to address your businesses’ needs to fill any gaps that your primary policies don’t cover.
Read on below to find out more about different types of insurances and how they can benefit your business!
1. General Liability Insurance
This is the most basic liability insurance that all businesses require. The policy provides both defense and damages if you, your employees or your products and services have caused Bodily Injury or Property Damage to a third party.
2. Professional Liability Insurance
Also known as Errors and Omissions Insurance, this policy covers you in the event that services rendered are done so improperly or failing to meet what was promised. For example, if a dental clinic’s clerk schedules the wrong operation for a customer, then the insurance would pay for claims made against the dental clinic by the customer.