Types of Small Business Insurance
There are numerous types of small business insurance that a small business owner can purchase in order to ensure adequate coverage for their small business, all of which depend upon the type of small business they maintain, the requirements of the business’ home state, and the specific needs of the small business. Listed here is a brief summary of some small business Insurance available on the market which may help when obtaining the correct small business insurance for all needs of the business.
Business Property Insurance
When a small business has property involved, Business Property Insurance is available to cover damages that may occur due to various reasons, including hail, wind, smoke, vandalism, and civil disobedience. Property can include a broad array of physical items or places, such as buildings, lost income, computer equipment, interruption of business, company papers, and money. Two types of property insurance are available. The first type is an “all-risk” policy. It covers a wide range of incidents which will generally be contained in the policy. This type of policy usually covers risks that may be faced by the small business. Second is a “peril-specific” policy. This only covers losses from perils that are listed specifically within the policy. These can include crime area.
General Liability Insurance
Before a claim of accident can be made or of negligence or injury against the business, the small business should obtain General Liability Insurance. This type of small business insurance protects the small business against suits due to medical expense, bodily injury, slander, property damage, law defense costs, libel, or settlement bonds and judgments that may be required if an appeal procedure results.
Professional Liability Insurance
If the small business is a service-type business, an important type of small business insurance that the owner should consider is Professional Liability Insurance. This type of small business insurance protects the small business against malpractice, errors, and negligence. In some of this type of business, the governing body may require the small business to obtain this coverage in order to ensure the safety and security of the general public.
Product Liability Insurance
When the small business deals in wholesale, distribution, retail, or manufacturing; the correct type of small business insurance to protect against financial loss from defective products that may have caused harm or injury is Product Liability Insurance. Depending on the product type, the insurance policy should reflect the necessary coverage for the specific needs of the liability and value measured.
Workman’s Compensation Insurance
Any small business with employees who are outside of the small business owner’s own immediate family should definitely consider Workman’s Compensation Insurance. Most states require small businesses to obtain this coverage. This policy provides coverage of an employee’s medical expenses and income loss if they are injured at work. This policy will provide benefits for the employee until retirement age.
Umbrella Policies are available to cover just about anything that may not be covered or may exceed the limits of coverage of another policy. This type of small business insurance policy is generally inexpensive, but may often require a small business to purchase the maximum amount of limits on all other available policies before becoming available.
Each small business insurance policy and the company that provides it may greatly differ. It is the best practice to shop around for the small business insurance policy or policies that best fit the small business. By shopping online at one convenient site, anyone can compare companies and policies to get the most cost-effective coverage for their small business.