What is the one type of insurance that every business needs to have?

General liability is recommended for all small businesses. Nearly every small business needs general liability insurance. This liability policy provides protection against common customer or customer accidents, including bodily injury, property damage, and personal injury. General liability insurance protects you from claims related to business operations.

If someone is injured on your business property or if you damage someone else's property, this insurance covers the cost of your defense and any damage awarded to you. Any company that works directly with customers needs general liability coverage. This type of business insurance protects your company's assets from damage or theft. If your office is damaged because of a fire or if your computer equipment is stolen, this insurance will reimburse you for the cost of repairs or replacement, as well as the loss of revenue.

Any company with physical assets needs commercial property insurance. For example, let's say you own an accounting firm and your office has been robbed. Thieves steal your computer, printer and office furniture. If you have commercial property insurance, your insurer will reimburse you for the cost of repairs or replacement, as well as the income you lost while your equipment couldn't work due to the lack of equipment.

For example, let's say you're an architect. You design a house for a client, and they claim that the roof leaked during the first storm because your design was bad. If you are sued, your professional liability insurance will cover your legal expenses and any damages awarded. Learn the 11 steps to start a business Try Shopify free for 3 days, no credit card required.

By entering your email, you agree to receive marketing emails from Shopify. Sometimes referred to as errors and omissions insurance (E&O), professional liability insurance is a must for business owners who work directly with customers who offer services or advice. Professional liability protects your company from lawsuits for negligence, default, or inadequate provision of services. Business property insurance will cover the cost of repairing or rebuilding your company's physical structures if you suffer damage from fire, hail, theft, wind, smoke, or vandalism.

This insurance generally covers buildings, not other types of “properties”, such as vehicles in a commercial fleet. Vehicles are covered by a commercial vehicle policy. Property insurance sometimes includes a “business interruption” supplement, which will reimburse you for lost income related to property damage. For example, if your auto repair shop is damaged by a fire and only half of the bays work, property insurance with a business interruption clause will cover the repair of your building and reimburse you for lost income while operating at half your normal capacity.

General liability insurance helps protect your business if someone suffers bodily injury, property damage, or other types of injuries as a result of your business operations. It also provides legal protection to business owners, including protection against employee injury lawsuits. Cyber liability insurance is designed to protect you and your company in the event that your digital data is compromised. You might see business insurance policies organized in packages depending on your industry, such as insurance for cleaning companies or insurance for independent contractors.

When choosing a business insurance policy, it's important to choose one that covers all your risks. Workers' compensation insurance provides injured employees with replacement income and pays for medical expenses if they are injured on the job. The insurance needs of your business will depend on the size and type of business you have, as well as the industry you are in. If the customer demands it, your product liability insurance will cover your legal expenses and any damage awarded.

Despite this, insurance is an area where homeowners often try to skimp on the type of insurance they pay or on the amount of coverage they choose. Medium and large companies with more complex insurance needs generally purchase separate policies for each type of insurance. Workers' compensation insurance protects you from lawsuits or claims that result from employee injuries that occur on the job or as a result of the nature of your job. However, you may need other types of coverage depending on what your company does, where it operates, what type of assets it has, and other factors.

Key person insurance provides your company with the resources it needs to regroup after the untimely death of a critical employee. Ask your insurance agent or broker about the type of business property insurance best suited for your small business. If you provide a service to your customers and they claim that you didn't do the job right and that your mistake caused a loss on your part, this insurance covers the cost of your defense and any damage awarded. .

Jenny Kizzia
Jenny Kizzia

Professional food ninja. Proud coffee expert. Friendly pop culture guru. Certified beer buff. Beer scholar.