Clearly, no one wants to be the victim of crime – digital or physical. But, as a business owner, you have to assume the worst so that in case something happens, you’re not caught off guard. Surprises lead to panic, and panic leads to irresponsible decision making.
While you know insurance is important for your business, no owner wants to navigate trouble when it comes to their insurance. To save you the time and energy, we have listed the different ones down below as well as what they cover.
What Insurance Do I Need for my Business?
When you’re looking to purchase business insurance, remember that your coverage decisions depend on the size and type of your company. The most common coverage types are listed below:
- General liability
- Commercial property insurance
- Workers compensation insurance
- Commercial auto insurance
- Errors & omissions (E&O)
- Cyber liability insurance
What Does Small Business Insurance Cover?
Here’s a closer look at top coverage types for small businesses.
General Liability Insurance
General Liability Insurance gives a business protection against liability claim such as bodily injury and property damage. For example, a customer may make a claim against your business if he or she is injured in your store. General Liability can help cover you against the costs of the claim and potential defense costs.
Additionally, general liability insurance pays for legal costs, such as hiring an attorney or any judgements against you and your business while covering damage to reputation such as slander or copyright infringement.
Cyber Liability Insurance
We’ve talked about how imperative is that you are constantly on guard to prevent digital invasion in your company by shedding light on the latest cybersecurity concerns as well as pointing out common mistakes made by businesses. If you missed any of this information, you can find them here:
6 Common Cybersecurity Mistakes You May Be Making
Why Businesses Should Be Concerned About Cybersecurity Amid Russia-Ukraine News
How To Keep Your Business Secure from Every Angle
A cyber liability Insurance policy helps with the costs of cyberattacks and data breaches.
For example, let’s say one of your private customers information gets leaked from your companies database and they file a claim against your company. Carrying cyber liability insurance will help pay for the costs such as notifying customers impacted by a data breach and offering free credit monitoring.
Commercial Property Insurance
Commercial Property Insurance covers the physical location of your business and equipment, computers, office furniture, tools, inventory, supplies, etc. Commercial property insurance is also known as business property insurance.
Workers Compensation Insurance
Workers Compensation Insurance helps cover costs to employees while they are unable to work after suffering w work related injury or illness. This includes medical care, physical therapy and compensation for lost wages. Death benefits for an employee’s family are also available if an employee passes away from a work-related illness or injury.
Commercial Auto Insurance
Commercial Auto Insurance is needed for the cars, trucks and vans used for your business. Because a personal auto insurance policy typically excludes any business uses of a vehicle, its so important to get a commercial auto insurance policy if you have a company car, truck, etc. that you use for business purposes.
Errors and Omissions Insurance (E&O)
If your business provides a service or offers advice to clients, then it may be a good idea to buy errors and omissions insurance. E&O insurance – also known as professional liability insurance- pays for the costs resulting from mistakes that you make in your work.
For example, if you make a clerical error and it causes a client to lose thousands of dollars, professional liability insurance can help cover the costs if the client makes a claim. if you make a clerical error and it causes a client to lose thousands of dollars, professional liability insurance can help cover the costs if the client makes a claim. Without E&O insurance, you’ll be on the hook for reimbursing customers out of your own pocket and paying for a lawyer.
“Do I Need a Business Owners Policy (BOP)?”
If you are a small business owner, you may wish to consider a business owners policy (BOP). A BOP includes:
- General liability insurance
- Commercial property insurance
- Business interruption insurance, which helps you recover lost business income if your business is unable to open because of a problem such as a fire
A BOP is less expensive than buying separate insurance policies for this same coverage. So consider whether a BOP is right for you.
“Do I Need Commercial Auto Insurance?”
A commercial auto insurance policy is the right way to cover vehicles that you use for business, whether it’s a company car or a commercial truck or van.
If you get into an accident while driving the vehicle for business, your personal insurance policy won’t cover the claim.
What Does Small Business Insurance Not Cover?
There are instances where small business insurance doesn’t offer coverage, such as:
- Flood damage to your business. (You need to have a separate commercial flood policy)
- Fraudulent and intentional acts
- Wrongful termination, unless you have an employment practices liability policy
Let’s be honest, there’s a reason there’s so much creativity in the insurance commercials we see on tv – its not exciting and not a subject people enjoy discussing.
However, business insurance is necessary to keep your company from financial loss.
If you need to learn more about how to get business insurance or are interested in learning new ways you can save on current plans, we can help. On your own, finding the right business insurance plan at the right price can be a challenge. You have to assess where you need coverage, research the best providers and deal with the constant upsell from each company.
A good business partner does all of that work for you, guiding you through the best plans for your business by assessing your industry, your company size, as well as the rate you expect to grow. Our team experts here at MCDA CCG can be that trusted partner, one who uses our industry-wide knowledge and expertise to shop around for the best insurance for your company – all while making sure you are not spending where you don’t need to.
Call our office – headquartered in Placentia, Orange County, California – for a no obligation consultation!
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