The Main Types of Insurance for Businesses
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Do you own a small business, or are you thinking of starting one? Getting business insurance is a smart move. With lots of insurance options out there, it can be confusing to know which one to choose.
Business insurance protects your business from going under when the unexpected happens. That could be anything from hurricanes to lawsuits. With the right insurance in place, you’re covered for most eventualities.
Let’s take a look at the main types of insurance for businesses and why you should get them.
General Liability Insurance
This is one of the main types of small business insurance that everyone should have. It follows one of the golden rules of business: to take out insurance for any costs you could not cover from funds the business has on hand.
This coverage protects you against financial loss resulting from:
- bodily injury
- property damage
- defending lawsuits
Depending on the policy you take out, it may also provide additional coverages. Find an insurance agent near me who can talk you through exactly what coverage you need.
Business Owner’s Policy
For business owners choosing insurance, a business owner’s policy might be a good choice. It’s an all-in-one package that combines property and liability insurance.
It can help you if your business experiences a fire, certain types of disaster, or theft. It’s also great for those running small businesses such as restaurants and retail stores.
Professional Liability Insurance
If you provide services to customers, you need to take out professional liability insurance. This covers you against financial loss if someone sues you because of negligence, malpractice, or errors.
Product Liability Insurance
If you manufacture, distribute, or retail products, product liability insurance is for you. If someone is injured by a faulty product that you manufactured or sold, you would be covered against financial loss.
Commercial Property Insurance
As its name suggests, this is for businesses that own property or lots of physical assets. This could include machinery or stock.
This protects you against both loss and damage in the event of a wide range of scenarios. These could include:
- smoke damage
It’s important to consider local conditions when choosing these kinds of insurance and any additional cover you may need. For example, cover against natural disasters such as earthquakes would usually cost extra.
Home-based Business Insurance
Recently more and more of us have set up our businesses. Many people are running these businesses from home.
Home-based business insurance is small business insurance that you can buy as an add-on to your homeowner’s insurance. It would cover you against third-party injury and possibly provide some cover for business equipment.
The Types of Insurance for Businesses You Need
None of us can predict what tomorrow will bring. The recent pandemic has brought this truth home harder than ever!
Now you know the types of insurance for businesses available, you can get the right cover. It will protect you against the unexpected.
If you’re running a business, no doubt you’d like more hints and tips to keep it going from strength to strength! Check out our Business and Finance sections for more of the latest advice and trends.