5 Types of Insurance Small Businesses Should Consider
If you own a retail business and a product that you sell is malfunctioning do you have the insurance necessary to cover your company and protect it from liability? All businesses require some insurance, and some require specialized policies to be fully covered. Here are five types of commercial business insurance that your small business should consider:
Home-based business insurance
According to the Small Business Administration, many homeowner's insurance policies do not cover losses of home-based businesses. It may be possible to add additional property damage riders to a current homeowner's policy, but other professional and general liability may not be covered. Home-based business insurance will help cover any inventory or equipment in case of damage.
General liability insurance
Accidents, claims of negligence and injuries in the workplace are covered under this insurance.
Professional liability insurance
If your business provides customers with a service you may want this insurance. It can protect against errors and negligence as well as malpractice. Some states require certain professionals, like clergy and healthcare workers, to have this policy.
Product liability insurance
If your business makes, sells or distributes products,this policy safeguards your company against financial loss if something you are involved with is defective and causes injury.
Commercial property insurance
Your company's income, buildings, computers, papers and money are protected under this policy. It also protects against business interruptions, like if there is a plumbing leak and you have to shut down for the day. Issues like vandalism, fire, smoke, severe weather and other damage or loss of property are covered with Commercial Property Insurance.
Workers compensation insurance
If you have employees, this policy is necessary to cover accidents and illnesses that are caused by job-related duties. Most states require employers to have this insurance to protect both the business and the workers.
This policy protects your company in the event that an employee becomes disabled on the job. If your business is in Rhode Island, Puerto Rico, New Jersey, Hawaii or California it is required by law that you have disability insurance.
People with careers in business may have solid ideas of what degree of protection they need in terms of insurance but talking with an insurance professional will allow them to learn what policies will best protect the wellbeing of their business. They may think of options that are specific to a particular kind of business or practice that are especially helpful.
This article is sponsored by Western Governors University, a nonprofit, accredited, online university. WGU offers online bachelor degree programs in business and online MBA programs. To find out more, please visit www.wgu.edu/wisecareers_business