Whether you own a small family business or a company with several employees, it is crucial to ensure that your business is properly insured and covered. The right insurance policy can protect you and your employees from numerous risks, fines, and legal consequences, making it well worth investing in. Whether you sell consumer goods or provide services to your clients, you should know about your business insurance options and what is covered by each policy. That is why the experts at Mountainview Insurance have put together a list of 4 types of small business insurance to help you determine which policies will be required for your needs.
Learn what is covered by business insurance policies.
4 Crucial Types of Insurance for Small Businesses
The following types of insurance policies can help to ensure that you are covered from the majority of potential risks to your business:
1. Liability Insurance
Liability insurance policies protect businesses from costs and financial penalties incurred from claims against the company. These claims can be filed for various reasons, though the most common are bodily harm and property damage caused by client error or negligence. Liability insurance can be broadly divided into two distinct categories: general and professional.
General policies cover injuries that occur on the property and help to protect employees, clients, and other visitors. Professional policies are focused on protecting the business from being sued for a variety of different reasons including errors, omissions, or negligence of any kind. Both types of liability insurance are important for businesses of any size regardless of the products or services they offer.
2. Product Liability Insurance
Though technically a part of liability insurance, product liability policies are crucial for businesses that sell products instead of/in addition to offering services. Product liability insurance protects a business if their product is defective or causes harm to an end user, making it a vital type of coverage for any business that offers consumer goods.
3. Employee Insurance
If you need to hire employees for your business, you will need employee insurance. These policies cover workers in the event of a work-related injury or illness. Employee insurance policies can also help cover the legal costs for lawsuits or claims filed by the family of a deceased employee.
4. Property Insurance
In addition to your employees and products, the physical property for your business must be insured. Property insurance can help your business recover after significant damage caused by natural disasters or human error. Property insurance policies typically cover a range of circumstances including damage to the building, damaged tools/assets, and damage caused by vandalism. Without this type of insurance, you will be left with the entire bill for repair costs.
To learn more about the types of insurance available for small businesses, get in touch with our team at Mountainview Insurance. We can be reached through our online contact form and will be happy to help you find the perfect solution for your business.