10 Types of Insurance All Small Businesses Need

Small business owners face a number of risks in running their companies. Throughout their working activities, they run into liabilities that can cost them tens of thousands of dollars if they don’t have the requisite protection in place. It’s why many growing business owners are reviewing the business insurance marketplace and comparing the products they need to secure their company’s future.

Commercial Property Insurance

Commercial Property Insurance provides protection for physical assets such as buildings and their contents, equipment and inventory, and property in transit, as well as business interruption coverage. Property insurance products help protect your business and its assets against perils and events such as fire, theft, flood, unplanned shutdowns, and other security challenges, to name a few.

Commercial Auto Insurance

Commercial Auto Insurance is designed for any business that operates a vehicle, or relies on a vehicle. If your business owns or leases multiple company vehicles, sometimes a “Fleet” policy is the more efficient approach. The insurance is designed to respond just as your own personal auto policy does providing coverage for the vehicle as well as yourself and any other listed employee/co-worker on the road. Optional coverages are available for purchase including collision, comprehensive, loss of use and driving record protection.

Workers’ Compensation Insurance

Some trades and classes of employees are not subject to the various compensation acts. An employer could be sued under common law if the employee is injured in the course of employment and the injured employee could successfully recover damages if the employer is found negligent. This exposure can be covered. Employers Liability Insurance provides coverage for claims or actions of bodily injury to an employee of the insured arising out of and in the course of employment. Unlike Worker’s Compensation, the injured person must prove that the employer was responsible for the injury and was negligent.

Professional Liability Insurance

Professional liability – also known as “Errors and Omissions,” and sometimes also referred to as “Malpractice Insurance.” It responds to claims arising from acts of professional negligence for people who act as professionals in their organization to ensure that their personal interests are covered. Who Is A Professional? There is no single definition of who is considered a professional. Auto mechanics, counsellors, financial advisors, hairdressers, and even volunteers can fit into this definition.

Data Breach Insurance

Data breach insurance, also commonly referred to as “Cyber,” is becoming a more common consideration for modern business owners. Coverage will respond for the liability arising out of any breach in the data in which the business’ customers personal information, such as addresses, credit card numbers, phone numbers, social security numbers, and so on, is exposed or stolen by a hacker or other criminal who has gained access to the electronic network storing the data. If your company is within the computer services field or in any industry where customer data is stored on a private network, you need this coverage.

Directors And Officers Insurance

Directors and officers have a duty to exercise due diligence in overseeing the management of the organization they serve. On occasion, a director or officer can find themselves in a legal situation as a direct result of their actions for wrongful dismissal, discrimination, financial losses or failure to maintain certain records, for example. This means they require legal protection from the company to safeguard their rights and ensure that the firm and their representative are not held liable for the actions in question. Directors and officers (D&Os) insurance products offer comprehensive protection to organizations with paid or volunteer boards.

Product Liability Insurance

In cases where a business manufactures products, and vendors are responsible for the products made and sold, product liability insurance is critical. These products protect your company in case of injury due to defective merchandise. Product liability insurance products can be tailored to your specific product, business, and industry to ensure tightly controlled coverage levels.

Business Interruption Insurance

When a disaster occurs in a local area, businesses in that area are directly impacted. In these cases, they require business interruption insurance. For example, if a flooding event occurs within your retail space and you’re unable to operate from the location for several weeks, business interruption insurance will protect the company in the meantime. It will ensure you have access to operating resources to keep the company afloat while the flooding cleanup work is completed.

Commercial General Liability

One single event, one single accident and one single claim all have the potential to put you out of business. General Liability offers protection for your business against claims for property damage and bodily injury to third parties arising from your operations, your premises, and your products or completed operations/jobs. It also provides protection for advertising liability and defence costs, as well as personal injury to third parties. A must have for every business – small, medium or large.

Life Insurance

For those who own and run their own business, life insurance is a must-have product. If you have life insurance, your loved ones will be protected and will receive a payout if anything happens to you. It will provide you with clear peace of mind when running your company. Some life insurance products also provide payment for critical illness, ensuring that your company can be protected and your family can be kept financially comfortable while you recover from a significant medical challenge.

By removing the potential for liability in a broad range of business areas, you can protect yourself, your company, and your business’ assets over the coming years.