Types of Insurance Available for Small Business Owners Blog | Types of Insurance Available for Small Business Owners
General 06/20/19

Types of Insurance Available for Small Business Owners

Running a small business requires the business owner to take on a significant amount of jeopardy. It’s a risk/reward type of game wherein the business could either one day turn into Amazon or go down in flames like the Hindenburg. Because of this risk, it’s vital that a small business owner protects his or her company by obtaining the right type of insurance plan. Without it, one disastrous event or liability suit could sink the ship before it ever had the opportunity to make sail.

If you’re a small business owner, it’s your responsibility to safeguard your company. Therefore, finding the correct insurance coverage should be the first priority on your list. Naturally, you may wonder but what small business insurance do I need? Read on to discover the policies you should strongly consider obtaining.

 

Types of Insurance Available for Small Business Owners

There are a variety of small business insurance policies that you can choose from to mitigate any potential small business risks. The following are just some of the policies you should strongly consider:

  • General Liability Insurance – Protects a business from liability claims related to defective or misleading products or services that may have caused bodily injury or property damage.
    • General liability insurance is a must-have for all small businesses
    • Each policy will look different and depend on the business’ needs and the industry
  • Property Insurance – If you own or rent a building or have expensive equipment, inventory, or tools, you’ll need to have property coverage. This liability coverage protects inventory, equipment, furniture, etc. from any of the following:
    • Fires
    • Smoke damage
    • Vandalism
    • Theft
  • If you live in an area that has mass-destruction cataclysms such as tornados, floods, and earthquakes, you’ll typically have to purchase specialty insurance for those things. In addition, a standard property insurance policy won’t cover business interruptions or loss of earnings; you would have to purchase business interruption insurance. Consider speaking with your insurance company or other business owners in the area to see what’s recommended.
  • Workers’ Compensation – Workers’ comp covers employees who are hurt in the line of duty. Even if it’s an accounting firm, one slip in the office could result in hundreds of thousands of dollars of medical expenses bills. A worker’s comp agreement accomplishes the following:
    • Gives medical benefits and coverage for injured employees
    • Provides wages to employees who are hurt and unable to work
    • Prevents employees from suing their employer
  • Although laws vary from state to state, most require a business owner to have workers comp if they have W2 employees. Failure to obtain workers’ compensation can result in serious penalties and fines, not to mention expose the business to possibly crippling liability.
  • Vehicle Insurance – Commercial auto insurance is meant to protect your company’s vehicles and drivers that transport:
    • Employees
    • Equipment
    • Products
  • A vehicle insurance policy will protect your vehicles, employees, and equipment from damage or collisions. If your employees operate their personal vehicles for company business, you may want to consider getting non-owned auto liability to protect your small business from the chance that your employee has improper or inadequate auto insurance.
  • Professional Liability Insurance – Also known as Errors and Omissions (E&O) insurance, covers defense and damages for inadequate or botched professional services. Many small business owners make the mistake of believing that their general liability insurance will cover all damages or issues; however, if they’re a professional business, that isn’t the case. Examples of professional occupations include:
    • Consultants
    • Lawyers
    • Accountants
    • Real estate agents
    • Beauticians
    • Masseuses
    • Insurance agents
    • Technology providers
    • Hair stylists
  • Home-based business – Naturally, many small businesses begin out of the home. What many owners fail to understand is that homeowners’ insurance policies do not cover home-based businesses in the same way as commercial property insurance. Without it, your equipment or inventory could be irrevocably lost in the case of fire, theft, or other types of damage.
  • Business Owner’s Policy (BOP) – Business owner’s policy is a form of umbrella coverage that packages all the typical coverages a small business owner would require. This often covers:
    • Business property insurance
    • Vehicle insurance
    • Liability insurance
    • Business interruption insurance
    • Crime insurance
  • Depending on your company’s needs and liabilities, you may save money bundling the services as opposed to purchasing them individually.

 

Starting Your Business

Building your company from the ground up is hard work that’s made all the more difficult by having improper insurance policies in place. Attempting to run a business without it is imprudent at best and illegal at worst. Therefore, it’s essential that you obtain the right insurance for your small business.

If you need help with any sort of insurance coverage, NOW Insurance has you covered. Reach out today and a professional insurance agent will be standing by to help you get started.

 

Sources
  1. Clade, S. Simon, Peragine, Smith & Redfearn LLP. Worker’s Compensation Insurance – A Necessity. https://www.spsr-law.com/index.php/news/48-workers-compensation-insurance-a-necessity
  2. Frankenfield, J. Investopedia. Errors and Omissions Insurance (E&O). (2019). https://www.investopedia.com/terms/e/errors-omissions-insurance.asp
  3. Lesonsky, R. Forbes. Business Insurance: The Safety Net Your Small Business Needs. (2018). https://www.forbes.com/sites/allbusiness/2018/12/06/business-insurance-safety-net-your-small-business-needs/#5f0962ce319f
Blog

Tips for protecting yourself and your business.

Insurance Basics

Getting Liability Insurance for Events

General

Starting an Event Planning Business: A to Z

Insurance Basics

How Much Does Event Planning Insurance Cost?

Insurance Basics

Insurance for Event Planners: What You Need to Know

Insurance Basics

What’s Included in Event Planning Insurance Coverage?

Insurance Basics

What Can a Tax Preparer Be Held Liable For?

Insurance Basics

Tax Preparer Insurance 101

General

4 Nurse Staffing Issues to Avoid

General

What You Need to Know to Be a Tax Preparer

Insurance Basics

Insurance for Bookkeepers: A Complete Guide

General

How to Start a Nurse Staffing Agency

Insurance Basics

What is Liability Insurance for Bookkeepers?

General

How to Build Customer Relations in Your Business

Insurance Basics

A Guide to Medical Staffing Insurance

General

Developing an Effective Risk Management Plan

Insurance Basics

All You Need to Know About Therapist Insurance

Insurance Basics

What is Malpractice Insurance for Counselors?

Insurance Basics

Benefits of Therapist Liability Insurance

Insurance Basics

What’s the Average Counselor Malpractice Insurance Cost?

Insurance Basics

Risk and Hazards of Being a Massage Therapist

Insurance Basics

Do Nutritionists Need Insurance?

Insurance Basics

What’s Included In Massage Insurance Coverage?

Insurance Basics

Everything You Need to Know About Malpractice Insurance Coverage For Nutritionists

Insurance Basics

Do Massage Centers Need Insurance?

Insurance Basics

How Much Does Nutritionist Insurance Cost?

Insurance Basics

Insurance Plans For Nutritionists: Everything You Need to Know

Insurance Basics

Massage Therapy Insurance: A Beginner’s Guide

General

Coronavirus Outbreak: 3 Tips to Keep Your Healthcare Business Safe

General

Company Working From Home? Stay Safe of Cyber Attacks

Insurance Basics

Business Interruption Insurance and Coronavirus

General

4 Best Practices for Medical Workers During the COVID-19 Outbreak

Insurance Basics

Inside the Hacker’s Mind – Social Engineering

Insurance Basics

Do Consultants Need Insurance?

Insurance Basics

Fitness Center & Gym Insurance: A Beginner’s Guide

General

Should Your Company Work From Home During the Coronavirus Outbreak

Insurance Basics

Why Your Business Needs Wellness and Fitness Insurance: A Comprehensive Guide

Insurance Basics

What Is the Cost of Gym Insurance?

Insurance Basics

What Insurance Do Consultants Need?

Insurance Basics

How Much Is Insurance For a Consultant?

Insurance Basics

Benefits of Consulting Insurance Coverage

General

Pay as You Go Insurance for Healthcare Professionals

General

You Have Your Physician Assistant’s License: Now What?

General

Why Are You Still Buying Occurrence Malpractice Coverage?

General

What Does Malpractice Insurance Cost?

General

Physician Assistant Malpractice Coverage: A Practical Guide

General

Do Student Nurses Need Malpractice Insurance?

General

Ouch, You Hurt Me! Do Nurse Practitioners Need Their Own Malpractice Policy?

General

What Type of Insurance Do Nurses Need?

General

Understanding Insurance Terms: Back to Basics

General

What Does Professional Liability Insurance Cover?

General

Types of Insurance Available for Small Business Owners

General

Potential Small Business Risks

General

General Liability Insurance: How to Keep your Business Protected

General

Choosing a Business Insurance Provider: Everything You Need to Know

General

Business Insurance Plans – Do I Need One?

General

Benefits of Professional Liability Insurance

General

What Is the Average Cost of Errors and Omissions Insurance?

General

What Is Cyber Liability Insurance?

General

What Does Errors and Omissions Insurance Cover?

General

Cyber Insurance 101: Why You Need It

General

What Does a Cyber Liability Policy Cover?

General

Errors and Omissions Coverage: What Is It & How Does it Work?

General

What Is the Average Cost of Cyber Liability Insurance?

General

Who Needs Errors and Omissions Coverage?