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  • Writer's picturejoseph retcho

Types of Small Business Insurance

Updated: May 12, 2023

small business owner

There are many types of insurance just designed for small businesses. It gets confusing trying to figure out what you may need. Here are some common insurance policies designed for the small businesses.

Business Interruption Insurance: If you have to close your business for an extended period of time, such as to repair damage caused by a fire, business interruption insurance will cover your lost business income and ongoing expenses. This way, you can pay your payments even if you are not generating money.

Business Owners Policy (BOP): This policy protects you against a wide range of property and liability risks. It can assist safeguard your company in the event of a fire (property damage), a halt in operations (loss of business income), or a lawsuit (liability) arising from bodily harm, property damage, personal injury, or advertising injury.

Commercial Auto: Insurance that covers the use of a car for business purposes. Your personal auto insurance coverage may not cover business-related losses. A commercial auto policy protects your company's vehicles against physical damage and liabilities.

Cyber Insurance: This might be critical in assisting your company's recovery following a data incident. This covers expenditures such as company interruption, revenue loss, equipment damage, legal bills, public relations charges, forensic analysis, and costs associated with legally required notifications.

Liability insurance: Liability insurance protects your legal defense costs and judgments if you are accountable (liable) for someone else's losses and are sued.

Premises: The location or property, such as a building or land held by the policyholder, to which insurance coverage will apply.

Professional Liability Insurance: Insurance that covers damages resulting from errors in your work, such as if you mishandle tax planning for a customer or design a product improperly. This is sometimes referred to as errors and omissions insurance.

Umbrella Insurance: Coverage for losses that exceed the coverage limits on your existing insurance policies. Once your other policy has exhausted its coverage, the umbrella insurance may pay any leftover expenditures.

Waiver of Subrogation: This prevents your firm and your insurance company from claiming a portion of any damages paid to a third party who was liable for the loss in connection with a paid claim.

Workers Compensation Insurance: Insurance that protects your employees if they are injured on the job. When an employee is handicapped as a result of a working injury, these plans compensate their medical expenditures and replace their income. The rules differ from one state to the next.

Need help? Contact us and get your business insurance coverage quote.

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