Small Business Insurance: What You Need


Modern companies are required to insure many things, from liability insurance to company car insurance and more. There’s often a lot of confusion about the insurance your business needs, especially since more and more businesses are using their homes for office space. The following is a handy list of the main types of insurance your business needs and why you need it to be successful and comply with local business laws.

1 General Liability Insurance

No matter what you do, you need liability insurance, even if your business is located outside of your home. This insurance will protect and indemnify you if you, your products and/or services, or your employees are involved in an accident that causes (or is believed to cause) bodily injury or property damage.

2-professional liability insurance

Often referred to as “errors and discharges insurance,” this coverage protects your business if it does not provide the services promised or if they are not provided properly. This is an important insurance policy because people make mistakes. If you or your business doesn’t live up to its promises, this insurance will help protect you from liability and/or damages without jeopardizing the financial future of your business.

Please note that this coverage is generally not available under general liability insurance.

3-property insurance

While not required, you should be aware of property insurance if you own buildings, equipment, computers, or almost anything else related to your business. This policy will protect you in the event of a disaster, such as a fire, as well as against vandalism and other crimes.

Another aspect of this coverage is loss of income and/or business interruption coverage, which will pay you when you recover from an event that interrupts your normal work.

4-commercial vehicle insurance

If your company owns vehicles, whether they are owned by employees or used by you, they must be insured by the company. As long as these vehicles are used to transport people, goods, or equipment, they must be insured for commercial vehicle insurance in the course of business. The insurance will cover you in the event of a loss or collision.

If your employees use their own vehicles for work, you still need a policy to protect your business in the event of an accident while the vehicle is being used for business purposes. This is known as “non-auto liability insurance.”

5-employee compensation.

If an employee or employer is injured in a workplace accident, employee compensation provides income to help with medical issues and allows time off for medical procedures. Insurance also means that the employee waives the right to sue the business, which is important for business owners. In some places, employee compensation insurance is mandatory, so it is important to know the legal requirements for this coverage in your area.

6-Directors and Officers Insurance

With this insurance, your business leaders will be protected from actions that could affect your company’s profits, profitability, or operations. In fact, if your directors or officers find themselves in legal trouble as a result of their actions, this insurance can cover the costs associated with protection and, in some cases, the losses suffered as a result of those actions.

7-Homeowners Insurance

If you run a business out of your home, you will need this insurance. Depending on the amount of your loan, it may be mandatory, but if you do business out of your home, you must notify your insurance company. Without adequate insurance, some incidents may not be covered by your standard insurance because they involve an unregistered business. Before setting up an outside business, contact your insurance company to make sure you are eligible and insured.

Whether your business operates outdoors, in an office, or on the road, you will need several types of insurance to cover liability, accidents, and other occurrences.