Types of Small Business Insurance Coverage You Need

Anyone who is in business knows the importance of insurance. When something unexpected happens, having business insurance may be the difference between the continuity of your business or its failure. Unfortunately, a lot of businesses are not covered and this is very dangerous. Stats from Next insurance show that 44 percent of small businesses here in the States are not insured. Businesses need to be insured. When you purchase the right insurance, you will protect your business and its assets against damage and legal issues.

Business insurance operates the same way as personal insurance. It protects your business from financial, legal, and other claims in case of accidents, disasters, lawsuits, and other unexpected occurrences. Here some of the most common and important business insurances you should consider.

Workers compensation insurance

By law, this is one type of insurance you cannot afford to avoid. States require most employers to carry out worker’s compensation insurance in case employees get hurt in line with their work. Failure to get the right type and amount of coverage can result in fines and even criminal penalties. If an employee experiences a work-related injury, this cover will be able to cater for medical expenses and also pay them a portion of their wages as they recover.

Unemployment insurance

This is another type of insurance required by the government. It covers your employees in case of job loss or termination. You will have a tax burden that depends on the number of employees you have and your employee turnover. Employees can calculate and make tax payments but it can be easier to let human resource software do the calculations.

Disability insurance

This is a type of insurance that provides guaranteed payments to employees at a percentage of their income in case they are unable to work due to illness or injury. Unlike the worker’s compensation, the illness or injury doesn’t have to be work-related. States such as California, New York, New Jersey, Hawaii, and Rhode Island require employers to provide some level of short term disability insurance.

General Liability Insurance

This is another important type of insurance business should have, although its not a requirement. General liability insurance protects a business if a third party such as a vendor, client, or customer gets injured from your business’s property, services, or products. It will cover physical injuries on business property, It will also cover property damage to another individual or business while carrying out your work a well as advertising injuries.

Commercial property insurance

This type of insurance covers business inventory, equipment, and office space as well as other property against damage or loss. Commercial property insurance is a must-have for many types of businesses, especially those running on brick and mortar. It is a type of insurance that will cover many incidents including theft, vandalism, fires, and weather-related damages.

You may also consider other types of insurance including professional liability insurance, product liability insurance, employment practices liability insurance among others.

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