Do You Really Need Business Insurance?

Running a small business can be both exhilarating and daunting. And no matter what size your company may be, the risks feel great simply because it’s your money, time and reputation on the line every day. That’s why having the right type of business insurance (with the appropriate coverage) is a critical way to alleviate your risk should something unexpected happen.

Here are answers to two common business insurance questions asked by small business owners:

Is There Insurance Specifically Designed For Small Businesses?

Most small business owners choose to open a Business Owners Policy (BOP), which generally provides the following coverage explicitly designed for small businesses:

• Property Damage – covers damage to your office building (whether owned or leased), equipment, fixtures, inventory, displays and any furnishings you have.
• Liability – covers any legal costs you incur if you’re sued or held liable for accidental bodily injury or property damage on your premises.
• Business Interruption – protects you against lost income after a covered peril affects your business, such as theft, fire, wind, falling objects or lightning. 

What Other Types of Insurance Should I Consider?

Your business may need to carry more than one type of insurance, depending on the kind of work you do, the size of your company, and where you’re located. For example, an attorney may be required to carry professional liability insurance, or your state may require that you carry workers’ compensation insurance. Here are a few of the standard insurance options small businesses will carry in addition to BOP:

• Professional Liability Insurance – usually required for those offering professional services, such as doctors, lawyers, accountants, among others. This type of insurance covers any losses relating to liability claims from mistakes or lapses of professional duties. 
• Commercial Auto Insurance – any company-owned vehicles should be insured through a commercial auto policy.
• Cyber Insurance – provides additional cyber protection against data breaches and malicious computer intrusions. Many internet-based businesses or companies that store their records online may choose to add this insurance.
• Commercial Umbrella Insurance – provides additional coverage in the case of catastrophic events.
• Worker’s Compensation Insurance – provides benefits to employees who suffer a work-related injury or illness. It will help pay medical care, wages from lost work time and more.

Get The Insurance That Makes Sense.

We recommend that you discuss your individual needs with a trusted insurance agent to make sure you get the right coverage at the best price possible. As your business expands, you may require more protection; therefore, review your coverage annually to make sure you have the best coverage available.