Types of Insurance Small Business Owners Should Have
Starting a business is a life-changing decision. It requires a lot of time, money and effort. Protect your investment and give yourself peace of mind with business insurance. There are many different types of insurance small business owners should consider purchasing. The type and amount purchased will depend on your business. Below are a few of the most important types to consider.
1. General Liability:
Every business including home-based business should have liability Insurance. General Liability provides defense and damages to you if any of your products or services or employees cause injury or property damage to a third party
2. Property Insurance:
If you own your building or have business personal property such as office equipment, computers and inventory, you should consider purchasing property insurance. The policy will protect you if there is vandalism, theft, a fire, etc. You may also consider business interruption insurance in case your business is unable to operate due to the above instances.
3. Commercial Auto Insurance:
This policy will protect your company’s vehicles. You can insure work cars, SUVs, vans and trucks from damage and collisions. Non-owned liability insurance is another option to consider. This policy will cover your employee-owned cars that are used for your company’s business. It will protect your company should the employee not have insurance or if it’s inadequate.
4. Worker’s Compensation:
As a business owner it is vital to have Worker’s Compensation insurance to protect yourself and your company from legal action. Worker’s Compensation provides wage replacement and medical benefits to employees who are injured on the job. In exchange for these benefits, the employee relinquishes the right to sue their employer for the incident. It’s also required under most state laws for any business with W2 employees.
5. Business Owners Policy (BOP):
A business owner policy combines all the required coverage for a business owner. Often, BOP’s include property insurance, vehicle coverage, liability, business interruption and crime insurance. You can alter the package based on your company’s specific needs. The policy is often cheaper than purchasing the coverage individually.