Essential Options for Business Insurance
- Insurance for General Liability
defends against claims from third parties (property damage, advertising injury, and bodily injury).
Example: At your store, a customer trips and falls.
- Insurance for Commercial Property
protects your inventory, machinery, and structure against natural calamities, theft, vandalism, and fire.
can be included in a Business Owner’s Policy (BOP), which is typical for small enterprises, along with liability.
- Policy for Business Owners (BOP)
lowers the cost of combining property insurance with general liability insurance.
frequently covers company interruption (loss revenue during shutdown).
Excellent package for small business startups.
- Workers’ compensation insurance, which is necessary in the majority of states if you hire people.
covers lost income and medical expenses in the event that an employee has an injury at work.
mandated by law in nearly all states.
- Errors and Omissions Professional Liability Insurance
for companies (consultants, accountants, IT, designers, etc.) who offer services or advise.
covers claims resulting from errors, missing deadlines, or carelessness.
- Business Auto Insurance
if you or your staff utilize cars for work-related activities (such as deliveries or service calls).
Business use is usually not covered by personal auto insurance.
- Insurance for Cyber Liability
covers customer information theft, hacking, and data breaches.
becoming more significant for companies handling sensitive data and e-commerce.
- Employee Health Insurance
The Health Care Reform Act of 2010 (ACA) mandates providing coverage for employers with 50 or more workers.
The SHOP marketplace is available to small enterprises with less than fifty employees.
- Liability Insurance for Employment Practices (EPLI)
includes cases including wrongful termination, harassment, discrimination, and hiring/firing.
- Coverage under an umbrella
offers additional liability protection over and beyond the limits of your previous plans.
beneficial for companies that face a greater risk of litigation.
Advice for Owners of Small Businesses
To save money, bundle policies (via a BOP).
Verify the state’s requirements for disability, unemployment insurance, and workers’ compensation.
Compare quotes from companies like as Nationwide, Progressive, and Hiscox, or use the brokers that the SBA recommends.
Industry matters: Professional liability may be more important to a consulting firm than property and liability to a bakery.