You have heard that you need insurance for your small business, but typing "small business insurance" into Google is just going to give you a minefield of options. Just what do all those types mean, and what sort of coverage are you going to get? Here are the four main types of small business insurance that you can get.
Professional Liability Insurance
This is the option that businesses of all sizes will need. It is also referred to as errors and omissions insurance. This type of insurance covers you in the event of negligence. Every industry will need some sort of professional liability insurance just in case their product causes harm or damage to the consumer.
Home-Based Business Insurance
When you work from home, your property becomes your place of business. Your usual home insurance, whether homeowners or rental, will not cover you like a commercial type of insurance will. You will need to get the extra cover to make sure your computers, equipment, and materials are all covered in the event of fire, theft, or other loss.
Business Interruption Insurance
When something happens to your work premises and you cannot do your job, your business will suffer. A small business needs to have coverage in the event of interruption due to things like flooding and natural disaster. By getting business interruption insurance, you do not need to worry about the loss of income while you find a new location to do your work.
This is especially important if your business is location dependent. If not, you may be able to work anywhere once you get your equipment back, helping to keep the cost down on the payout needed and the cost of the premiums down.
Personal Disability Insurance
Small business owners will also need to get personal disability insurance. If you hire others, you will need to look into workers compensation. Both of these protect the business and employees in the event of an accident and injury to you or themselves. Personal disability insurance will pay out a small amount each month while you cannot work. This can include maternity pay. Workers compensation will pay the money to the employee in the event of an accident or injury sustained at work stops them from working.
Make sure you take out all the types of insurances your business will need. Protect your finances in the event of an accident or injury, whether to yourself, one of your employees, or one of your customers.