What types of insurance policies should I consider for my small business and what does each one cover?

Types of Insurance to Protect Your Small Business

As a small business owner, there are several types of insurance policies you should consider to protect your business from financial loss in case of unexpected events. Each policy covers different risks and liabilities, so it's important to understand what each one entails.

• General Liability Insurance: This policy covers your business against bodily injury and property damage caused to others by your business operations. It also covers legal fees and settlement costs if your business is sued for the covered damages. This policy does not cover damage to your own property or injuries to your own employees.
• Property Insurance: This policy covers damages to your business's physical property, such as your building, equipment, inventory, and furniture, caused by events such as fire, theft, vandalism, or natural disasters.
• Workers' Compensation Insurance: This policy provides benefits to employees who are injured or become ill because of their job. It covers medical expenses, lost wages, and rehabilitation costs. This policy is mandatory in most states if you have employees.
• Professional Liability Insurance: Also known as Errors and Omissions (E&O) insurance, this policy protects businesses that provide professional services against claims of negligence or mistakes that caused financial harm to a client. This policy is commonly purchased by businesses in the healthcare, technology, and legal fields.
• Cyber Liability Insurance: This policy protects your business against cyber-attacks or data breaches that can cause loss or theft of sensitive information, such as customer data, financial records, or intellectual property. It covers investigation costs, legal fees, and restitution to affected parties.
• Product Liability Insurance: This policy covers legal expenses and damages caused by defective or harmful products that your business manufactures or sells to consumers.

It's important to note that insurance policies may have limitations, exceptions, and exclusions based on specific circumstances, so it's critical to read and understand the policy terms and conditions before purchasing them. Additionally, you may want to seek the advice of an experienced insurance agent or attorney to assess your business's individual needs and risk exposure.