Do you know what types of insurance you need to protect your small business from common risks best? While you may think that going with the state and local minimum requirements is just fine to get things up and running, it’s in your best interest to research which coverage options work together to provide the most comprehensive business insurance policy possible. Whether it’s time to review your current policy or you’re looking to expand your small business, education is the key to peace of mind when it comes to business insurance protection. Keep reading to learn more.
What Kind of Insurance Does My Small Business Need?
Every small business needs an insurance policy that is designed to fit your specific needs and protect against a variety of risks that your business may face over the years. So, which coverage options should your company consider as you build a policy? For most small businesses, there are a few key coverages that will work as the foundation of your insurance policy. These include:
General Liability Insurance
General liability coverage helps to protect your business from liability claims where a third party is seeking compensation for bodily injuries, property damage, libel, or slander. Commercial general liability insurance will likely help to pay for medical expenses and your legal costs if your business is involved in a lawsuit.
Professional Liability Insurance
Even the most experienced business owners can make mistakes, and if one of your clients believes a mistake you made impacted their company negatively, you could be caught in a legal battle. Professional liability coverage—also known as errors and omissions insurance—will cover your company if you are found to be negligent in any of the professional services you’ve provided.
This type of coverage works to protect the buildings that your business owns or leases and any business property inside. The contents inside the building that are typically covered include any specialized tools and equipment you use, furniture, computers, inventory, etc. You can tailor this coverage to include additional protection for valuable records and papers as well.
Workers’ Compensation Insurance
This coverage is designed to not only protect your business but your employees as well. If an employee is injured in a work-related accident or falls ill after an accident at work, this essential coverage will cover their medical expenses, lost wages, and in serious cases, provide death benefits as well. It prevents you from paying out-of-pocket for these expenses and provides your employees with much-needed financial relief too.
Commercial Auto Insurance
If you or an employee is found to be at fault for an accident while operating a work vehicle, this coverage will likely pay for damaged property and any related medical expenses. If you use any company vehicles, you must invest in commercial auto insurance coverage to protect your employees and your bottom line.
Contact the Don Neeley Agency Today
While these are the building blocks for most business insurance policies, depending on the unique services you offer, you may need to consider additional coverage options. To learn more about building a comprehensive insurance policy for your small business, contact us today. Or give our local insurance agents a call at (480) 345-7621 and be sure to ask about a free quote.