So you’re ready to start your business and you’re concerned about how long it’ll be able to remain afloat?
One of the most important ways to keep your business running is to buy business insurance. A small business insurance policy helps protect your assets from seizure and can also pay for damages.
But what are the different types of small business insurance? What’s the best business insurance for your company?
If you’ve ever wondered “what type of business insurance do I need?” here’s your answer:
Most Common Types of Business Insurance
The business insurance you need depends on what you need to protect at your company.
Depending on the nature of your business, you might need several small-business coverage options. You can read this article to learn more about the importance of small business coverage.
All companies must buy liability insurance. This covers any associated costs with legal fees. If you lose a legal battle, the insurance can cover damages that you’ll have to pay the plaintiff.
Professional Liability Insurance
This is insurance that protects you from human error. It ensures that you don’t have to compensate for mistakes such as malpractice or neglect. This is especially crucial for dealing with many employees and customers.
Property and Vehicle Insurance
If your business owns a lot of physical property, consider buying property insurance. This offers you a reimbursement if your company’s property gets damaged through no fault of your own.
You can also opt for vehicle insurance if you need vehicles for your company. This works in a similar fashion as car insurance for your personal vehicles.
Other Types of Business Insurance
Now let’s look at the types of business insurance that are less common but might be helpful for your company.
If you have several employees who work on-site then you should consider buying workers’ compensation insurance. This helps cover healthcare costs if your employees get injured at the workplace.
If you sell physical products you might consider buying product liability insurance. This covers the legal fees and damages in case your products cause harm to your customers. This is especially crucial if you sell food, medicine, or hazardous products.
If you plan on relocating your business you might consider buying business interruption insurance.
This is a rare type of business insurance that covers any lost fees while you’re trying to relocate your business and you’ve shut it down. It might also cover fees if your business was shut down due to unforeseen circumstances.
What Type of Business Insurance Do I Need?
Now you know the answers to “what type of business insurance do I need?” and can determine what small business coverage options you should consider.
For most businesses, you want to buy liability insurance. This covers legal fees and damages in the event of a lawsuit. Professional liability insurance helps cover you in case you get accused of negligence or malpractice.
You should also consider business insurance for protecting your company’s property including vehicles. Consider the other types of business insurance if you have employees, physical products, etc.
You can find more great business advice on our website.