As an entrepreneur, you’re certain to run into scenarios in which business insurance could benefit you. In fact, for many businesses, various types of business insurance are a legal necessity.
Wondering which types of small business insurance are available out there? Wonder no more! We’re going to discuss them all in detail now.
Business Owner’s Policy
We’ll start by discussing the business owner’s policy. This is a policy consisting of 3 popular insurances: general liability insurance, commercial property insurance, and business income insurance.
Most businesses can benefit from these three insurances at some point or another. And by purchasing all 3 in the form of a business owner’s policy, they can save money on the premiums for each.
General Liability Insurance
General liability insurance protects a business from a variety of events. These events include everything from causing injury to customers, to doing damage to a person’s property or possessions, to committing slander and/or libel, and more.
Commercial Property Insurance
Commercial property insurance covers damage that occurs to your purchased or rented building. It also covers work equipment existing within your building. Note, though, that it only protects your building in the event of occurrences like vandalism and arson, not natural disasters like floods and earthquakes.
Business Income Insurance
Also known as business interruption insurance, business income insurance keeps your cash flow going in the event that your work resources become damaged or dysfunctional. In other words, it replaces your revenue when you’re being prevented from bringing in revenue yourself. This insurance is important, as it ensures that you’re always able to pay rent, utilities, and other such expenses.
Workers’ Compensation Insurance
Workers’ compensation insurance helps you pay workers who were injured on the job and who are unable to work for a short time. If one of your employees gets injured while working for you, you will be forced to pay workers’ compensation. By having an insurance policy in place, you can lessen the financial blow.
Commercial Auto Insurance
If you have vehicles registered to your business, you’ll need to purchase commercial auto insurance. This insurance will cover not only your own vehicles but vehicles that were involved in accidents with your vehicles also.
There are a variety of other auto insurance policies out there that businesses can take advantage of as well. For instance, check out this cheap trucking insurance option from Hummel.
Professional Liability Insurance
Professional liability insurance is meant for service providers, for instance, lawyers, doctors, consultants, real estate agents, and the like. It protects them in the event that they’re sued for failing to provide professional-grade service.
There Are All Types of Business Insurance
In truth, there are all types of business insurance out there. The ones discussed above are just the most common. In any case, it’s important to assess your business operations and purchase insurance policies that protect your business during accidents and hard times.
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