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What types of insurance do you need for your small business?

By July 19, 2017 May 21st, 2020 Insurance

Business insurance

First and most importantly you need General Liability Insurance. Every business, even if home-based, needs to have liability insurance.  The policy provides both legal defense costs and damages if you, your employees or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party. If your company primarily is engaged in business-to-business transactions, you will probably be asked for proof of general liability insurance. And if your business is a tenant in building, the build owner may require proof of a general liability policy.
 
Next you need to consider Property Insurance,  If you own your building or have business personal property, including office equipment, computers, and inventory or tools you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc.  You may also want to consider business interruption/loss of earning insurance as part of the policy (especially if you own a restaurant) to protect your earnings if the business is unable to operate.
 
There is a single policy that combines both general liability and property insurance. It is a Business owner’s policy or (BOP). A business owner policy packages all required coverage a business owner would need. Often, BOP’s will include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance . Based on your company’s specific needs, you can alter what is included in a BOP. Typically, a business owner will save money by choosing a BOP because the bundle of services often costs less than the total cost of all the individual coverage’s.
 
You may also need Commercial Auto Insurance. Commercial auto insurance protects a company’s vehicles. You can protect vehicles that carry employees, products or equipment. With commercial auto insurance you can insure your work cars, SUVs, vans and trucks from damage and collisions.  If you do not have company vehicles, but employees drive their own cars on company business you should have non-owned auto liability to protect the company in case the employee does not have insurance or has inadequate coverage.  Many times the non-owned can be added to the BOP policy.
 
Another coverage that has become essential for businesses is Cyber Liability Insurance. Cyber insurance generally covers your business’ liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver’s license numbers and health records. Remember this type of loss is not covered under a company’s general liability policy.
 
If you are a lawyer, accountant, consultant, notary, real estate agent, printer, own a hair salon, therapist, or a technology provider you will need Professional Liability Insurance. This type of insurance is also known as Errors and Omissions Insurance. The policy provides defense and damages for failure to or improperly rendering professional services.  Your general liability policy does not provide this protection, so it is important to understand the difference.  
 
These may be the only coverage needs your business has, or you may have others. As an independent insurance agency Emerge Insurance Agency will work with you to assess all the risks that may impact your business. We will then work on your behalf to mitigate those risks with insurance policies the cover your risk at the lowest premiums we can find.

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