It is a fact that all types of businesses require, at a minimum, basic liability insurance. It is always wise to protect your business against as much as possible. All industries are vulnerable to lawsuits for one reason or another these days. Even if you do most of your work from home, there are still some risks to be aware of, such as copyright infringement. Fortunately, there are custom small business commercial insurance policies available, so you can search for quotes tailored to your type of business and size of business.
You should take the time to learn about the four main types of coverage for General Liability, Business Property, Business Auto, and Worker’s Compensation. If you don’t make deliveries or use your car for anything related to your business, you probably won’t need that coverage on your policy. If you do not have employees, then you will not need workers’ compensation.
Even if you have some employees, you may or may not be required to have workers’ compensation, depending on your state’s laws and the amount of risk involved with the employees. There is professional liability insurance for people like lawyers, accountants, consultants, real estate agents, etc. General liability and professional liability are not the same.
There are some risks that are excluded in small business commercial insurance, even though they can involve large losses. For example, floods and tornadoes require “specialty policies.” This is because insurance companies do not like having to pay out such a large amount of money to all damaged businesses within a small geographic area.
Commercial insurance coverage for small businesses
Here are some things that small business business insurance will generally protect your business from:
• If someone is injured in any way while on physical property associated with your business
• If a customer has any property damaged by you or your employees
• If your products cause damage to someone or their property
• If you use a customer’s photo in your advertising and the customer tries to sue you for copyright
• If your company is named in a lawsuit for medical expenses and property damage
What about your OWN injuries? What would your business be if something happened to you? These are also things to consider when adding specialty coverage to your policy.
Just use the internet to find the right business insurance for your small business, starting with Hiscox Business Insurance. Review your insurance every year to make sure it still aligns with your needs.
