The 7 Best Business Insurance Policies All Businesses Must Have
In case of a disaster, business insurance will ensure your company can go back to working order. Here are the 7 best business insurance policies to have.
Looking for the best business insurance for your company?
Not sure what type of insurance is most important?
According to the Small Business Administration, some of the most common risks small businesses face include property losses, legal liability for products and services, and the injury, disability, and death of employees.
If you run a business of any size it’s important that you have insurance which helps protect you from these risks, among others. Fortunately, there are many business insurance types out there which can help to offer protection and give your company the assistance it needs.
Below we’ll give you our list of the 7 best business insurance policies that all businesses should have.
1. Commercial General Liability Insurance
One of the most important types of business insurance is general liability insurance.
This insurance allows coverage for damage which may occur during general business operations. If your employees, your services, or your products cause any kind of harm to a third party, then it will cover you.
For any businesses that have third parties on the premises often this insurance is essential. Even home-based businesses need this kind of insurance as it provides good general protection for damages.
2. Professional Liability Insurance
While this type of insurance sounds similar to commercial general liability, don’t confuse the two. This insurance offers protections that the general liability insurance doesn’t.
This insurance offers protection when a company fails to offer the services it was hired for to or it delivers on its promises inadequately.
This kind of liability insurance is also known as errors and omissions insurance. It is particularly important for any businesses that provide services directly to clients.
3. Property Insurance
Property insurance is also important for a business of nearly any type to have. Property insurance will cover the building owned by your business along with the equipment that your company owns.
Office equipment, inventory, and tools can all be covered by this type of insurance. It will protect your company in the case that something unexpected should happen such as fire damage, smoke damage, theft, or vandalism.
This insurance is particularly important if your company has a lot of valuable inventory and equipment. It’s crucial that you find a way to protect yourself in the case of problems.
4. Commercial Auto Insurance
Company auto insurance is also important and will protect your company cars in the case any accidents or injuries take place. You may have a large fleet of vehicles or you have a single vehicle that you use for company operations. Either way, you need to have insurance to protect your company in the case of accidents.
Also, keep in mind that you should also have some kind of vehicle liability insurance even if your employees use their own vehicles for the job. You should make sure you have protection for non-owned vehicles. This way, your company will be protected in case an employee gets into an accident and doesn’t have insurance or isn’t properly covered.
5. Workers’ Compensation Insurance
Workers’ comp insurance is also a must-have for businesses and will protect you in case a worker is injured while on the job. This insurance will provide the employee with missed wages and medical assistance as a result of an accident. At the same time, the employee gives up their right to sue the company.
It’s crucial that a company has this kind of insurance to protect itself against legal issues. It can save your company a lot of trouble and headaches.
Also, keep in mind that any company that has W2 employees will typically need workers’ compensation insurance. The insurance is usually required of any business that has employees, but specific state laws do vary.
6. Product Liability Insurance
If you have a company that manufactures products you’ll want to get product liability insurance. Many companies are very thorough with product development and have done rigorous safety testing. Yet, sometimes products will still have problems once they are in the hands of customers.
If a product has caused damage or harm in some way to a customer then the company may be held liable. In these cases, product liability insurance will offer protection to the company based on the specific product sold.
Not every type of business will need product liability insurance. Manufacturers, however, will need this insurance to be well-protected from unforeseen issues.
7. Business Interruption Insurance
Business interruption insurance is also important for companies and can offer extra protection. This type of insurance will help in certain situations when a company is unable to operate for an extended amount of time.
There may be a problem or an unforeseen event that causes your business to stop operations. If so, business interruption insurance will be essential. It can protect your company from any lost time that has occurred. This may be necessary to help your company when your employees can’t work or do their required tasks for earning business revenue.
Businesses that need a physical location to operate would especially benefit from this type of insurance.
Choosing the Best Business Insurance For Your Company
While there are many types of insurance policies out there, the types of business insurance listed above are the most crucial. That said, only you can decide for yourself what the best business insurance policies are for your specific company.
It’s important to ensure your business runs smoothly and is well-protected in the worst of situations. To do this, you’ll want to carefully consider each of the policies listed above.