The types of small business insurance you require are determined by the type of company you run. A roofing company, for example, that works at dangerous heights has a greater risk than an accounting firm whose employees largely sit at desks.
Here are some questions to think about while purchasing small business insurance:
- Do you employ people?
- Are you renting your building or do you own it?
- Do you provide a service to your clients?
- Are you selling and products overseas?
- Do you make a product and sell it to customers?
- Is workers" compensation required?
- Do you have a company vehicle or fleet?
- Are you required by contract to have a specific kind or level of coverage?
Common Commercial Insurance Products
When it comes to managing your property, having an agent that understands your risks, the market, and has the skills to build a program that meets your objectives is invaluable. Each policy is unique and subject to your own terms and conditions.
Commercial Property Insurance
property insurance is recommended whether a company owns or leases its space. In the event of a fire, loss, storm, or theft, this Insurance protects your equipment, signage, inventory, and more.
- Business Interruption Insurance covers the loss of income that a business suffers after a covered loss (fire, windstorm, etc.), while its facility is shut down or in the process of being rebuilt.
- Tenant's Insurance is needed if a commercial lease requires tenants to carry a certain amount of Insurance. A renter's commercial policy covers damages to improvements you make to your rental space and damages to the building caused by the negligence of your employees.
- Commercial Liability insurance Liability insurance is necessary for any business, even if it is run from home. If you, your workers, or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party, the policy covers both defense and reparations.
- Directors and Officers Insurance is needed even if you are a privately held business. Directors and officer's liability Insurance protects your business, owners, executives, and managers if individuals, competitors, third parties, or government regulators make claim for damages.
- Commercial Auto Insurance The automobiles owned by a business are covered by commercial auto insurance. Vehicles that transport employees, products, or equipment can be protected. You can protect your work cars, SUVs, vans, and trucks from damage and collisions with business auto insurance. If you don't have company vehicles, but your workers use their own cars for work, you should get non-owned auto liability insurance to protect the firm in the event that the employee doesn't have insurance or has inadequate coverage.
- Cyber Liability is a risk that every business has. According to the Insurance Information Institute, businesses have a greater chance of having a cyber breach than they do of having a fire. Most businesses should consider cyber liability insurance, which is designed to cover the costs of investigations, notification, and credit monitoring for affected individuals, regulatory compliance, defending lawsuits, and payment of any resulting judgments or settlements.
- Faulty Workmanship is a new and unique endorsement that provides a specific limit to protect against claims arising out of faulty workmanship, materials, or products. These claims would otherwise be excluded by the "business risk" exclusions found in every standard ISO Commercial General Liability policy.
- Equipment Breakdown coverage offers extra protection for electrical, mechanical, or digital equipment used by your business, including heating, cooling, and refrigeration systems; computers and communication equipment; and more. It can pay for the cost to repair or replace the damaged equipment in the case that there is physical damage, as well as cover the cost of service interruption.
- Debris Removal Insurance covers the cost of removing debris after a fire, flood, windstorm, etc. For example, a fire burns your building to the ground. Before you can start rebuilding, the remains of the old building have to be removed. Your property insurance will cover the costs of rebuilding but not of removing the debris.