Types of Business Insurance

Business owners know that good coverage can save their business, and the lack of coverage can ruin it. But shopping for business insurance is seldom on the top of their priority list of things to do, especially for small business owners. Learn about the common types of business coverage you may need so you can make a quick and informed decision.

Small business owners are usually experts in their field, and also very knowledgeable about most aspects of their day to day operations. They tend to love their jobs, and have a real vision that lead them to start their own enterprise in the first place. They would do anything to preserve that business, and they also know that adequate coverage can provide their company security against unpredictable events, while the lack of coverage could lead to ruin.

However, because a small business owner has so many demands on their time, and often, no real interest in the subject of insurance beyond knowing they need it, I want to provide a quick summary of some common types of business insurance that small businesses should consider.

Business Liability Insurance

This covers your business against a claim that your product caused them loss or damage because of negligence by the business or employees.

Business Property Insurance

Your building, property, and contents can be covered against damage or loss. Some policies narrowly define the type of loss, while others cover almost anything.

Business Interruption Insurance

A policy which covers business revenues against an unexpected, temporary work stoppage that is outlined in the policy. If you fear that a storm or fire could stop your business, and the loss of revenues could be ruinous, look for coverage now.

Business Owners Policy

A popular policy for small business, this combines liability, property, and sometimes, business interruption insurance in one basic policy.

Professional Liability Insurance

Professionals may need to cover themselves against a claim that their services caused them a loss. For instance, doctors purchase malpractice insurance while insurance agents purchase Errors and Omissions Insurance.

Commercial Car Insurance

These policies are very similar to personal auto insurance policies, except they cover vehicles used for business. Many small business owners rely on their own personal policies when they really should purchase a business policy.

Group Health Insurance

Every small business must, at least, consider a group medical plan. The plan will probably not come cheap, and may also create more paperwork and compliance issues for the family. But group health does tend to attract and retain high quality employees.