Having insurance is critical for small business operations. Insurance makes sure that small businesses are protected against all the different types of risks that they may face. A good start in selecting business insurance is considering the kind of risk that may face your business. Also, give thought to all the equipment, tools, technologies, and materials used by the business. Lack of insurance cover may result in business owners covering the cost of liability claims from their pockets. Below is an outline of the different types of insurance that a small business may need.
Business Interruption Insurance
This insurance ensures that your small business remains in operation even after suffering a huge loss due to natural disasters. While natural crises and disasters can be inevitable, it would be prudent to ensure business continuation after the occurrence of a disaster. The risk of business interruption due to adversities such as floods and wildfires is always present. This kind of insurance can help your business back to its feet by covering ongoing costs such as payrolls and bills.
Commercial General Liability
Every business is always at risk of liability claims. If there is one type of business insurance that small businesses should consider getting, it is the general commercial insurance. This insurance protects your business from property damage and bodily injury. Bodily injury is a common claim on businesses and assumes that the injury was a result of business negligence. To avoid the costly and time-consuming property damage lawsuits, startups and small business owners should ensure their businesses are covered against the same.
Commercial Property Insurance
It takes more than a great idea to run a successful business. Ensure that all your business assets and the building you operate in are well covered against significant risks. This kind of insurance can help in financing replacement and repairing the furniture, equipment, and inventory in the event of risk occurrence.
Product Liability Insurance
This type of insurance is necessary for a business that manufactures products rather than offer services. Product liability insurance covers any liability claims or lawsuits that may arise from a problem with one of your products. Some of the common issues that result in product liability claims include illness due to consumption and bodily injury or property damage that may result from the use of a product.
Professional Liability Insurance
For a small business that specializes in offering any creative or professional services, they must get professional liability insurance. This kind of insurance is also commonly referred to as errors and omissions insurance. It protects a small business from the lawsuit and compensation cost of liability claims on financial loss due to omissions or errors in services offered.
Cyber Risk Coverage
Many small business owners think that they are invaluable to hackers and that they are not vulnerable to cyberattacks. The truth is that small business forms the bigger victim portion of all cyberattacks. This can be attributed to the negligence in putting up any cybersecurity measures in small businesses. A single cyberattack can be the cause of your downfall. Cyber risk coverage protects your business against financial losses that may arise as a result of cyber threats.
Depending on how your business is set up, you may require many types of insurance as bigger firms. By using the services of licensed insurance companies, you can be walked through the different types of coverages that suit your business best.