6 Types of Insurance Coverages You Need as a Business Owner

Running and sustaining a business is not easy. Many incidents occur at work that can catch you off guard. While preventing risks is not always possible, you can reduce their impact on the business by investing in insurance.

Insurance can protect your business against many adverse events. It will help cover the costs associated with property damage, liability claims, theft, or data breach, depending on the type of coverage you obtain.

There are different insurance coverages that are important for a company. We will explore some crucial types of insurance that you can use to ensure your business is able to withstand the repercussions of a major natural catastrophe, an employee accident, or a device failure.

1. General Liability Insurance

It would be best if you had general liability insurance in place as a small business owner. This coverage, sometimes called commercial or business liability insurance, provides crucial protection against various claims. Personal injury, bodily harm, damage to property, medical expenses, and damage to real estate that was leased to you are some of these.

General liability typically pays for the damaged party's settlement payments and legal fees. However, the amount of general liability insurance coverage varies markedly between states. The extent of protection and the policy's maximum value are other variables that influence how much the insurer will cover.

2. Professional Liability Insurance

Owners of companies that provide services or recommendations to clients must have professional liability insurance. Your company is protected from lawsuits involving claims of negligence, performance failure, or poor service provision, thanks to professional liability coverage.

For instance, a financial planner might be accused of offering a customer advice that causes them to lose a lot of money. Or, perhaps a web developer produces code that cannot handle high traffic and causes lost revenue. Professional liability insurance will help reimburse the expense of damages related to claims of losses caused by these mistakes.

3. Workers’ Compensation Insurance

Workers' compensation insurance is another important coverage you should acquire once you've employed your first worker. This will pay for employees' medical care, including specialist care like physical therapy and burial expenses if they pass away from a work-related illness or accident. In return for these benefits, employees surrender their rights to sue the company for their injuries, regardless of who was to blame.

4. Property Insurance

Property insurance is necessary for you, whether you have a business space or rent it. Machinery, signage, stock, and furnishings are covered by this insurance in the case of a fire, hurricane, or theft.

However, typical property insurance policies often do not cover catastrophic disasters like earthquakes and floods. To help protect your company from such claims, you'll probably need to a different coverage, like commercial flood insurance.

5. Business Income Insurance

Your business' activities will probably be disrupted if a crisis or catastrophic event occurs. During this period, your workers won't be able to work in the office, produce items, or conduct sales calls, which will cost your company money. Business income insurance can assist in making up for lost revenue in this case. Therefore, you can utilize this coverage to cover recurring costs like rent, utilities, or salaries.

6. Data Breach Liability Insurance

Insurance against data or security breach liability safeguards your company if a cyberattack or hacking results in legal action, damages, or lost revenue. Credit card numbers, addresses, contact information, medical data, and personal information like birthdays and family names are examples of sensitive information that can be hacked.

You will require data breach liability insurance if your company handles or stores any personally identifiable consumer information. It can give you the resources you need to respond fast to restore your clients' trust and prevent future damage.

Apply for Insurance Today

Insurance coverages are crucial despite the size of your company or any current industry changes. At Bondon Insurance Services, we work hard to provide you with the best insurance solutions according to your business requirements. You don't have to struggle to find insurance because we handle everything so you can successfully concentrate on running your business. For a consultation and quote, get in touch with us today!