Running a small business comes with a lot of responsibilities, and obtaining the right insurance coverage is crucial for protecting your hard-earned assets and your company’s financial future. But with a sea of insurance options available, how do you determine what insurance you need for a small business? Here are three crucial types of insurance that every small business owner should consider.
General Liability Insurance
Accidents happen, and when they do, general liability insurance will come in handy. This type of insurance covers expenses related to property damage, bodily injury, and personal injury claims. Let’s say a client trips over a power cord and suffers an injury while visiting your office; general liability insurance will protect you from the costs incurred due to this unfortunate event.
General liability insurance not only safeguards your small business from potential lawsuits but also helps maintain your business’s reputation. Commercial property insurance is often lumped together with general liability insurance, forming a business owner’s policy (BOP) that protects both your physical assets and your business against liability claims.
Professional Liability Insurance
Depending on the nature of your business, it might be crucial for you to obtain professional liability insurance. This form of insurance covers you for any claims that arise from your professional advice or services, providing protection against claims of negligence, errors, or omissions. For example, if you run an accounting firm and make a costly error on a client’s tax return, professional liability insurance will help cover the financial fallout from such a mistake.
Professional liability insurance is also known as errors and omissions (E&O) insurance. Different industries have different versions of E&O insurance, like malpractice insurance for medical professionals or legal malpractice insurance for lawyers.
Commercial Vehicle Insurance
Commercial vehicle insurance differs from standard vehicle insurance, as it covers the specific needs of your small business-owned vehicles. Whether you’re using a single car to pick up clients or operating a small fleet of delivery trucks, commercial vehicle insurance is essential for safeguarding your company against accidents and potential legal issues.
Coverage varies depending on the policy, but commercial vehicle insurance typically includes liability coverage, collision coverage, uninsured/underinsured motorist protection, and medical payment coverage. Speak to an insurance expert to discover how you can tailor commercial vehicle insurance to meet the vehicular needs of your small business.
Ensuring your small business has the right insurance coverage is a crucial step in preserving the company you’ve so diligently built. No matter the size of your operation, acquiring appropriate insurance can provide peace of mind by safeguarding the financial future of your small business.
Determining what insurance you need for a small business isn’t as intimidating as it may seem. Now is the perfect time to assess your company’s specific risks, find a trusted insurance provider, and secure the coverage that will help your small business thrive for years to come.