Types of Insurance Coverage Small Business Owners Should Know About

Are you a new business owner? An existing business owner who has never purchased any form of business insurance?

If you answered “yes” to any of these questions, you’ve come to the right place.

Many small business owners skip purchasing insurance coverage because of the associated costs. You’re already running on a shoestring budget, so if your business can stay operating without incurring insurance costs, so be it. Right?

If that’s what you’re thinking, you’re making a big mistake. Insuring your business is an effective risk management strategy that can rescue your business from the jaws of failure.

Read on to learn the various insurance policies you should buy for your business.

General Liability Insurance

Running a business comes with a ton of potential liabilities.

Let’s say you own a salon. What liabilities are you incurring? A customer could slip on a wet floor or step on something and fall, sustaining an injury. Did you know they can sue your business for compensation?

General liability insurance protects you from the costs of such cases. If your business is found to be liable, the insurer will settle the claim on your behalf.

This insurance policy takes care of a range of potential liability events, but it’s not adequate on its own.

Business Interruption Insurance

When there’s a business interruption, it means you’re unable to run your business normally. Maybe you can’t open your store and allow customers to walk in and make a purchase or your manufacturing plant can’t keep on producing.

There are many events that can disrupt your business. For example, if there’s a severe storm in your area, businesses might stay closed until normalcy resumes. If your employees go on a strike, your everyday operations will be affected.

A business interruption means your business’s income-generating activities will be affected. Business interruption insurance compensates you for this loss of come.

Be sure to get the best insurance; otherwise, you might be left rueing the day you purchased the policy.

Cyber Insurance

Cyberattacks might sound like a problem for big corporations, but as a small business owner, you have cause to be concerned.

Increasingly, hackers are now targeting small businesses. So much that in 2019, 43 percent of all cyberattacks were directed to small businesses. Why? Because they are an easier target.

If your business has a website, is on social media, or uses any piece of internet technology in its operations, you’re vulnerable to a cyberattack. An attack can disable your operations and cause massive losses. Cyber insurance is there to cover your losses and data loss liabilities that might ensure.

Workers’ Compensation Insurance

If your worker gets injured on the job, you have an obligation to pay for their medical expenses, loss of income, as well as pain and suffering. This is a legal requirement across the U.S.

If you have employees, you have to purchase workers comp, which will compensate injured employees. This saves you from digging into your business pockets to issue the compensation.

Get Insurance Coverage for Your Small Business

Insurance coverage is a must-have for small business owners. At the very least, you need general liability insurance, cyber insurance, workers’ compensation insurance, and business interruption insurance.

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