Seven Insurance Policies for Small Businesses

With so many different types of insurance to choose from, it can be overwhelming to determine what type is best for your small business. Insurance Plus LLC is here to help. We found seven of the best insurance policies for small businesses.

1. Commercial Property Insurance

In the case of a catastrophic event such as a fire, explosion, burst pipe, storm or theft, commercial property insurance compensates you for losses or damage to your building, leased or owned equipment, and other property on the premises. In fact, commercial property insurance can cover items such as furniture, inventory, computers and anything that would be considered necessary for performing normal business operations.

2. General Liability Insurance

General liability insurance policies typically cover an organization for claims involving bodily injuries and property damage resulting from its products, services or operations. This form of insurance can help cover medical expenses and attorney fees resulting from bodily injury or property damage claims for which your organization may be legally responsible.

General liability insurance policies typically have four coverage elements: Premises liability covers injury on your property. Products liability covers if a product or service causes injury. Personal injury covers physical, financial or mental injury to a third party. Advertisement injuries cover alleged misinformation, copyright infringement or slander.

3. Employment Practices Liability

Employment practices liability insurance (EPLI) is a form of insurance that covers wrongful acts that occur during the employment process. The most frequent types of claims covered under an EPLI policy include claims of discrimination, wrongful termination, sexual harassment and retaliation.

4. Workers' Compensation

Workers' compensation is important in the event that an employee suffers a work-related injury or illness. This type of insurance is required in most states and is used to cover medical bills or wage replacement for employees who experience a work-related injury.

5. Cyber Liability Insurance

If any part of your business is on an online platform, it is crucial to obtain cyber liability insurance. This type of coverage can protect your business from a cyber attack or interruption that can cause a loss in data, revenue and the trust between you and your customers. Cyber liability insurance protects the internal information of your company, such as employees' social security or financial information, and also protects your customers' personal and banking information.

6. Commercial Auto

Commercial auto insurance helps cover the costs of an auto accident if you or an employee is at fault. This coverage can help pay for damaged property and medical expenses. Your business should consider a commercial auto policy if your business owns, leases or rents vehicles, has employees who drive their own vehicles for business, or has employees who operate company vehicles.

7. Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, can protect your business against claims that a service you provided caused a client to suffer due to a mistake on your part or because you failed to perform a service. Depending on your industry, professional liability insurance may be required by law.