If one wanted, there’s insurance for pretty much anything. Many self-employed individuals have no type of insurance at all. Business insurance should be purchased as business grows. These protect not only ourselves but our company, employees, customers, shareholders, and even the public. The most common and useful are general and/or professional liability insurance. However, insurance is designed to meet specific needs depending on your product or service. In light of this, here are 12 business insurance options.
12 business insurance options
General Liability Insurance: This is the most common of business insurance. These policies provide for both defense and damage cost. If anyone in your company, or your products/services, cause real or alleged bodily injury or property damage to a third-party.
Professional Liability: Also known as Errors and Omissions. It’s basically a general liability policy but it only covers professionals who render a service (like lawyers, accountants, real estate agents, notaries, insurance agents, home inspectors, tech providers etc.) Basically, if protects from any errors – what you say, write or do. Or any omissions – what you did not say, do, or write.
Property Insurance: For building owners this protects: personal property, office equipment, computers, inventory, tools and production equipment against things like fire, vandalism, theft, smoke damage or other damages.
Business Interruption & Loss: Helps protect earnings if the business is unable to operate.
Commercial Auto: Protect vehicles that carry employees, products or equipment from damage and collisions. Basically, like a general liability for your vehicles.
Health: Health insurance laws keep changing. This occurs both on the state and national level. Some states, like Hawaii, it’s mandatory for all full-time employees. As far as a “must have” insurance, the jury’s still out. Yet to help protect yourself it’s a good idea to purchase your own. For most small businesses it’s still an optional (although popular) perk you can provide the people who work for you.
Business Owner’s Policy (BOP): These policies provide a package insurance plan covering areas like – interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance.
Worker’s Compensation: protects both you and employees if they’re injured on the job. It provides wage replacement and medical benefits for those injured. And, the employee gives up his rights to sue his employer for that incident. This is mandatory in all states for W2 employees.
Unemployment: This ensures there’s enough money to cover your workers during periods of unemployment. Again, this is pretty much mandatory for W2 employees.
Directors and Officers: For incorporated entities LLC, S or C Corporations. If a company’s director finds themselves in a legal situation because of their actions it covers costs or damages from lawsuits.
Data Breach: Companies with sensitive information, trade secrets, customer lists, proprietary data, medical records etc. either on computers, servers or in paper are responsible for protecting that information.
Life: Many call this the peace of mind insurance. It protects anyone you list as a beneficiary in case of your death. For those who run business that are dangerous, this type of protection can provide financial security for loved ones in case of sudden death.