Did you know that after a survey of 30,000 businesses 44 percent had no insurance? Although small businesses are trying to save money as much as they can, having no small business insurance leaves businesses susceptible to losing thousands of dollars if the worst happens.
It’s also important to keep in mind that insurance is scalable. You don’t have to empty your bank account in order to get the coverage you need.
Discovering the right type of business insurance you need all starts with the proper knowledge of the most common types. Keep reading to learn more!
General Liability Insurance
This is the most common type of business insurance. It will protect you from claims resulting from bodily injury to someone else, property damage of someone else’s belongings, and personal injury.
If a large company wants all the benefits of general liability insurance without a third-party, captive insurance is also an option. This becomes a subsidiary of the company.
Commercial Property Insurance
Consider this type of insurance if you rely on owned or rented equipment for your business. It also protects your commercial buildings, furniture, inventory, and more.
This insurance typically protects you when it comes to fire damage, lightning damage, and burglaries. However, it won’t protect you when it comes to earthquakes or floods.
Business Income Insurance
Dealing with property damage means that you may not be able to conduct your business before that property is replaced or repaired. Business income insurance keeps cash flow steady, enabling you to pay bills, rent, and payroll even when you experience a catastrophic event.
Professional Liability Insurance
Although business owners hope it will never happen, there is always a chance that a client or customer will sue you because of a mistake that occurred.
For instance, consider what happens if you’re a wedding photographer. If you have a corrupted card and can’t recover precious wedding photos, the bride and groom may seek monetary reimbursement.
Data Breach Insurance
Do you collect personally identifiable information from your customers, such as addresses and credit card numbers? If so, it’s important that you prioritize the protection of that data to safeguard against it getting lost or stolen by hackers.
If a data breach does occur, data breach insurance helps you notify all of the people impacted. You’ll also be able to offer identity theft monitoring services as well as launch a PR campaign in order to rectify the situation.
Commercial Auto Insurance
You’ll want to consider commercial auto insurance if you or your employees drive company-owned vehicles. This is because if you’re using your personal insurance policy for a vehicle you use for business, it won’t cover any third-party claims.
Cover yourself from property damage and bodily injury claims. Make sure that you have commercial auto insurance for all of your business vehicles.
What Type of Business Insurance is Best For You?
Keep in mind that the type of business insurance you’ll need will vary depending on the services and products you provide. For instance, you won’t need commercial auto insurance if your business doesn’t require a fleet of delivery vehicles or much travel.
On the other hand, service-based businesses need professional liability insurance. Even when a mistake is made, they won’t be going bankrupt over it.
Ready for more tips on how to run your business the right way? Keep reading the blog!