- March 6, 2018
- Posted by: MMB
- Category: Business Insurance
Do small businesses need insurance? Regardless of size, small business insurance can mitigate risks so you can focus on your growing your business. Here are 5 types of insurance all small business owners should know about.
The type of insurance that is best for your small business depends on factors like where the business is located, how many people are employed, and how the business is legally registered. It’s important for small business owners to be aware of these 5 types of insurance and to understand how they can reduce your risk.
5 types of Insurance for Small Businesses:
1. Property Insurance
Property insurance covers the building and contents of the structure. Elements such as fire, wind, hail, or theft are typically included in this coverage, but this can vary by insurance companies and plans. Generally, if there is a period of catastrophic loss, you may be provided operating funds during the restoration of your business.
2. General Liability Insurance
If a person claims that your business is a hazardous environment that inflicted injury, harm, or damage by a product or service, general liability insurance can protect your business. This type of insurance covers charges (up to a certain amount), including attorney fees, defense fees, or medical bills, resulting from damages that you are found liable for.
3. Commercial Vehicle Insurance
Personal auto insurance policies will not cover a business vehicle involved in an accident. Commercial vehicle insurance provides coverage for automobiles owned and operated by a business. The coverage covers costs to third parties for bodily injury or property damage for which your business is liable (up to policy limits). Additionally, the policy may cover the repair or replacement of a vehicle damaged by flooding, accidents, or theft.
4. Professional Liability Insurance
Any business can be sued, and regardless of whether or not an allegation against your business has any merit, the legal process can be incredibly expensive and time-consuming. Therefore, professional liability insurance can be important to help protect small businesses from the potentially devastating effects of lawsuits.
5. Workers Compensation Insurance
In some states, if a business has more than 3-5 employees, it must have workers compensation coverage. Commonly referred to as workers comp, this insurance pays for medical expenses or lost wages in the event that an employee sustains an injury on the job, regardless of who is at fault. If death occurs, the compensation is provided to the employee’s family.
Have a Home-Based Business?
If you are a freelancer or work from home with another partner, you may not need to provide workers compensation. However, a typical homeowner’s policy may not provide enough property or liability insurance coverage. Always consult an insurance agent to find what amount of insurance will cover your business.
Do You Need a Package Policy for your Small Business?
Naturally, businesses in different industries have different needs. Often, insurance companies offer customized package plans at a discounted price than if the same coverage was bought through individual plans. This is especially useful for high-risk businesses that handle hazardous materials, operate with expensive equipment, or require heavy labor.
Cover your bases and protect your business. Contact McInturff, Milligan & Brooks via the form below or at (423) 639-5171 for a customized small business insurance quote that fits your needs.