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3 Types of Insurance Every Small Business Needs

Whether you are a new business owner, or have been running your business for years, it’s always good to review your insurance coverage. Having a good insurance policy in place will help protect you, your business, and your employees in the event of an accident. While we may not think that anything bad will happen, insurance is there to help out when things take an unexpected turn. These are three scenarios where you should have commercial insurance. There are plenty of more situations that call for insurance, so talk to you insurance agent to make sure that your business is adequately protected.

 

Hiring Employees

Workers compensation coverage is essential for businesses. Commonly known as workers comp, this type of insurance coverage helps protect your employees in case something happens. For example, if your employee gets hurt or sick on the job, workers comp helps pay for associated medical costs. It can also help cover the financial burdens if your employee can no longer work because of a work-related injury. In many states, workers comp is required for all businesses. Without it, your business could face legal trouble and some hefty bills.

Company Vehicles

If your company uses a vehicle to conduct business, then you will need a commercial auto insurance policy. This helps protect you in the event of an accident or damage your company vehicle sustains. Even if you have a personal auto insurance policy, a commercial auto insurance policy is still needed. Your personal coverage will not be applicable to your company vehicle. Commercial auto does not just apply to company cars. If you have a fleet, trucks, etc. then you need this coverage. Many states require businesses to get this coverage. However, the limits of coverage can vary from state to state. It’s a good idea to call your insurance agent to double check the amount of coverage your state requires. They can also help you figure out the right types and amount of coverage your company vehicles need. You can also check out our articles on commercial auto insurance!

 

Business Owners Policy

While not required by law, a BOP can be extremely useful. This is a package of different types of business policies all wrapped into one bundle. Getting a business owners policy can help protect your business from common accidents and situations. A great thing about BOP is that you can customize it in order to fit the needs of your small business. Typically BOP insurance will include property coverage, business interruption insurance, and liability protection. Property coverage helps protect buildings and contents in the event of an accident. Business interruption insurance will help protect your business from financial loss due to a catastrophe, such as a fire. Just be aware that business interruption insurance does not include damage from flooding. For insurance against flooding, you’ll need a separate flood insurance policy. Liability protection helps cover your business for harm you may have caused others.

 

While a lot of insurance coverage isn’t legally required, it’s never a bad idea to protect your business. Even if you take all the necessary precautions to avoid mishaps, accidents still happen. If you have any questions about business insurance, check out our small business owners insurance articles. You can also call Encharter and an agent will help answer any questions you may have! It’s always good to address any concerns or inquiries that you have!

Call 888.754.8299 to talk to an agent!

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