Do you need insurance? If you have a side hustle or own a business, you might’ve asked yourself this question too many times. Believe it or not, insuring your business can protect it from burglary, theft, fire, among other most common business insurance claims.
Before shopping around for your insurance policy, it’s important to figure out the types of coverage you need. Once you narrow down your list, you can make an informed decision and obtain the best coverage to protect your business.
Don’t know where to start? We’ve got you covered. Here are the top 5 types of insurance coverage you may need to protect your business today.
1. General Liability
General liability is the basic insurance coverage businesses need. This insurance will protect your company and employees from damages caused by your goods or services.
Negligence, bodily injury, accidents, and property damages are some examples of claims covered by general liability insurance. Depending on the nature of your business, insurance carriers may not provide this type of coverage. If that’s the case, you should click here to learn about captive insurance and how to self insure your business.
2. Commercial Auto Insurance
If you use vehicles to provide services, you’ll need to obtain this type of coverage. This insurance will protect all cars, trucks, vans, and other company vehicles.
Commercial auto insurance protects your units from damages and accidents. You may need higher limits on your vehicle insurance policy depending on the nature of your business and vehicles.
3. Property Liability
It doesn’t matter if you own or lease your business location. You should always consider obtaining property liability insurance.
This coverage will protect your facilities and business property such as furniture, computers, equipment, and inventory. Theft, burglary, fires and other mass-destruction events are examples of property liability claims you may file. Before obtaining property liability coverage, you should ask your insurance agent the incidents covered by your policy.
4. Worker’s Compensation
You may think only manufacturers need to worry about employee injuries at work, but that’s far from the truth. An employee can suffer an injury on the job no matter the industry you serve or the services you provide.
Worker’s compensation insurance will protect yourself and business from any claim for damages stemming from an employee injury. Typically, this insurance covers attorney fees, wages, and medical benefits.
5. Professional Liability
If you provide professional services, you should obtain professional liability insurance. Attorneys, accountants, consultants, real estate agents, and notaries can use this insurance to protect themselves from any mistakes when providing their services. Keep in mind this type of insurance isn’t part of your general liability coverage.
Do You Need Insurance for Your Business?
It doesn’t matter if you’re a newbie or a seasoned business owner. The short answer to the question “Do you need insurance?” is a resounding yes. It may be expensive, but obtaining an insurance policy is a must to protect any type of business.
Learning the basic types of coverage is a start to finding the right policy. However, you should consider consulting an expert to learn more about your options.
Keep in mind your insurance needs will vary depending on the nature of your business and everyday operations. An insurance agent can provide insight into the best limits and types of insurance to protect your business.
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