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Starting and running a small business is an exciting career venture, but it’s one that requires a level of know-how that the vast majority of aspiring entrepreneurs probably aren’t prepared for.

As a small business owner, you know better than most that small businesses are typically limited on resources and have a tough time handling the financial nightmare of an unexpected lawsuit, a workplace injury, or a devastating natural disaster. Coverage against these risks comes in a variety of different insurance policies that you should know about.

Regardless of whether your small business is new or well-seasoned, here are 7 policies you should have to protect yourself and your business.

1. General Liability Insurance

Though no small business is legally required to have general liability insurance, it is an incredibly smart idea to get coverage to protect yourself against unexpected accidents and injuries.

For example, if a customer browsing through your store slips on a puddle created by a roof leak and ends up breaking their arm, general liability insurance can help cover the attorney fees and medical costs that may befall you should you be found legally responsible. Not only does general liability insurance cover you and your small business from on-site accidents, but it can also protect your products, services, and operations.

2. Worker’s Compensation Insurance

If you keep up with P&C industry news, you likely understand the value of workers’ compensation insurance. Workers’ comp is designed to cover the associated medical and disability treatment as well as death benefits should any be required as a result of an on-the-clock incident.

This includes everything from bone-breaking falls to the acute development of carpal tunnel syndrome. Because these workplace accidents can result in costly claims, it’s always best to be prepared with the proper coverage should anything happen during business operations.

Depending on the industry you are in, you may require specialists that truly understand and cater for the kind of coverage you require. For example, sageuw.com is a specialist in shooting sports and have insurance made for those within the industry.

3. Property Insurance

Property insurance is an absolute must for business owners who rent or own their building. Covering costs incurred from damages affecting anything from signage to inventory, property insurance allows you to worry less about freak accidents and focus on rebuilding in the event that a fire, a storm, or robbery befalls you.

Do note that property insurance does not cover damages that are the result of an earthquake or flood. You’ll need to find different insurance policies to protect yourself against these natural disasters.

4. Business Owner Policy

A business owner policy is customizable so that it can include multiple insurance policies that will come in handy for the average business owner. Types of insurance you could potentially include are:

  • Liability insurance
  • Vehicle coverage
  • Property insurance
  • Crime insurance
  • Business interruption insurance

Because business owner policies are completely customizable, you can tailor it to your specific needs. You’ll be able to score a better deal packaging together rather than individually signing up for separate policies.

5. Commercial Property Insurance

Commercial property insurance protects your business’s physical property from fire, explosions, vandalism, theft, and hazardous storms. For example, say a hurricane blows through your building and damages your company computers and wipes away your inventory stock. Commercial property insurance can help cover the associated rebuilding costs.

6. Data Breach Insurance

If you’re like most modern small business owners, you depend on the internet to keep your business operations organized and updated. Whether it’s managing your payroll or filing all your tax season documents, your sensitive data should be seamlessly protected against any third-party cybercriminals.

In the event that a hacker gains access to your confidential digital data, you’ll want to be well protected. Data breach insurance is designed to safeguard your files, servers, and electronic documents from the costly damages caused by digital thievery. A lot of jargon can be used when it comes to these matters, which is why it may benefit you to familiarize yourself with the language used in the terms and conditions. A great resource worth exploring is F5's multi-cloud security glossary and the other resources they provide to educate those less familiar with this form of security.

7. Product Liability Insurance

Companies that manufacture products should have product liability insurance with coverage tailor-made for the specific type of product. This is, in part, because consumers can file lawsuits against the owner for damages caused by a product brandishing the company name.

Even if every measure is taken to ensure the safety of the product, accidents happen, and it’s always smarter to err on the side of safety rather than leaving it up to chance. Product liability insurance covers such claims and costs incurred by faulty products.

Did we miss any important types of small business insurance? Let us know how you stay protected down below!

Chiino
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