Common Types of Business Insurance: Do You Need a Policy?
Business owners are faced with many questions, including those associated with protecting themselves and their company from danger.
There are many types of business insurance, with each one providing a different level of coverage. When it comes to small business liability insurance coverage, there are three types to consider:
- General liability coverage. This protects you in the event of a lawsuit due to a claim of negligence, accident, or injury. For example, if a visitor is injured in your office and files a lawsuit to collect damages, this type of policy may cover some of the costs.
- Product liability coverage. Does your company sell a product? If so, this type of coverage is a must. It protects you in the event of a product defect that injures somebody or causes damage.
- Professional liability coverage. If you provide a service, this type of policy protects against negligence and errors. An example of this would be a doctor who carries medical malpractice insurance.
Along with these small business liability insurance policies, there are many others to consider. These include but are not limited to:
- Property and casualty insurance.
- Commercial auto insurance.
- Business interruption insurance.
- Life and disability insurance.
- Workers' compensation insurance.
Regardless of your business type, size, or location, you should consider the benefits of these business insurance policies. You may not require every type of coverage for your company, but it is important to have a solid understanding of what each one offers.
Your goal is to purchase the coverage you require without spending an overabundance of money. For this reason, learn more about each policy and what it does. From there, make a list of the coverage you absolutely need.
Final note: you may not be required to purchase a particular type of policy, but the protection and peace of mind may be well worth the money.