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What type of insurance policies should a small business consider purchasing?

Picture of Chris Battis By   ·  1 minute read

As a small business owner, it is important to consider purchasing several types of insurance policies to protect your business from potential risks and liabilities. Depending on the nature of your business, following are some types of insurance policies that might be appropriate for you:

  1. General liability insurance: This type of insurance covers your business for any third-party claims of bodily injury, property damage, or personal injury. A general liability policy becomes essential for a small business owner to cover the risks of third-party losses.
  2. Property insurance: This insurance policy covers your business property, including the building, equipment, and inventory, in case of damage or loss due to fire, theft, or other natural disasters. Property insurance is also referred to as casualty insurance.
  3. Workers' compensation insurance: It is mandatory in most states to have this insurance policy in case an employee gets injured on the job. Workers' compensation insurance provides financial aid to the injured employee for medical expenses, lost wages, etc.
  4. Professional liability insurance: This type of insurance policy is designed for businesses that offer professional services. It covers legal costs if a client sues your business for inadequate services or negligence.
  5. Commercial auto insurance: If your business uses vehicles for any purposes, such as deliveries or transportation, you need commercial auto insurance to protect your business in case of an accident or damage.
  6. Cyber liability insurance: This type of insurance policy will cover you against any loss or damages caused due to data breaches, cyber attacks or hacking attempts. Any small business owner who uses electronic devices for storing data or transacting businesses must have cyber liability insurance.

It is essential to note that the policies mentioned above may not be applicable or comprehensive enough to cover all aspects or areas of your business. Therefore, it's essential to consult an experienced insurance advisor who can guide and help you purchase the most suitable type of insurance. It is crucial, however, always to ensure that you read and understand the policy's terms and conditions before signing any agreements or contracts.