All businesses need business insurance, regardless of the size of the organization. Small business insurance is essential. It helps you cover any costs associated with damage to your property or with liability claims.
If you don’t have business insurance, you may need to pay out-of-pocket expenses for legal claims against your organization or for damages. In certain situations, this could be devastating financially.
In certain states, businesses need to have specific types of business insurance. But what are the different types of business insurance you may need?
In this article, we’ll talk about the various types of insurance your business requires.
What Type Of Insurance do You Need for a Small Business?
For the most part, small businesses are required to have a business owner’s policy(BOP). A BOP combines three types of insurance in one policy: business liability, business property, and business income insurance.
Business property is sometimes referred to as ‘commercial property’ and helps to protect your physical location. It also covers documents, tools, and furniture.
Business liability is often known as ‘commercial liability’.
This helps you cover any costs incurred through liability claims to your business. For instance, when a customer injures themselves on your property, they might bring a lawsuit against your business. Liability insurance will cover you for this eventuality.
If your business loses income because you’re unable to operate, then you will need business income insurance to replace this lost income.
Business income insurance helps you pay the bills during the temporary suspension of your business activities. For example, if your business is closed due to flood damage, your business income insurance will cover your lost income while the repairs are being carried out.
If you’re looking for insurance for a small business, APOLLO can help.
Business Insurance for Companies With Employees
There are a number of occurrences where specific states will require your business to have additional insurance. In most states, if you have employees, you’ll also need:
- Unemployment insurance
- Worker’s compensation insurance
- Disability insurance
If you have employees that are displaced from their job due to redundancy, unemployment insurance provides benefits to these workers.
Worker’s compensation gives financial support to any employees that are not able to work because of an injury or illness related to the workplace. For example, if one of your employees hurts their back while lifting boxes, worker’s comp will cover their medical bills.
Do I Need Business Insurance?
If you own your own business, you may be asking whether you need business insurance or not. The short answer is yes, you should definitely get insurance for your business.
Whatever the business insurance cost may be, it is worthwhile taking out insurance cover for your organization. Insurance will cover you for any loss of income, damage to property, or any liability that befalls you.
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