Choosing Excellent Insurance Coverage

What Types of Insurance Does Your Small Business Need?

If you are just starting your own small business, you may be wondering how best to protect your investment. There are many different types of business insurance policies, but not all types are right for every business. Check out these five common types of insurance your small business may need.

General Liability Insurance

Just about any business needs general liability insurance. This type of insurance is designed to cover common issues businesses face. For example, if someone is injured while at your business, your general liability insurance will cover the costs of their medical bills, reducing the risk of a lawsuit. General liability also protects you against others committing copyright or patent infringement against you, so no one can steal your ideas. Last, this type of insurance protects you if you libel or slander someone.

Commercial Property Insurance

If your business runs out of a physical location other than your home, you need to have commercial property insurance to protect against disasters. It protects the physical building as well as other forms of property, such as any signs outside your building. In addition, it protects company property, such as computers, equipment, tables, and so forth. Some plans cover most common disasters (non-peril), whereas others only include disasters specific to that area (peril).

Business Property Insurance

If your small business runs out of your home, you don't need commercial property insurance, but you should consider business property insurance. While your homeowners' insurance company may cover some costs in the event of a disaster or vandalism, it may refuse to replace any items that are only for the business. Business property insurance is an added blanket that covers your business's property.

Product Liability Insurance

For businesses that sell or produce products, it's also important to have product liability insurance. Without this type of insurance, someone may purchase one of your products, get hurt, and sue you. Without the proper insurance, this could destroy your business. However, with product liability insurance, the insurance carrier will pay if anyone has been injured.

Professional Liability Insurance

Some business don't sell products; they sell services, such as an attorney or a doctor. Instead of protecting products, these companies need to protect their services with professional liability insurance. The most common example of this type of insurance is malpractice insurance for doctors. If it turns out the services provided by the doctor caused further damage or pain, a patient may sue, but professional liability insurance will pay the patient.

Every business needs to ensure it is properly protected with insurance policies. For more information about commercial liability insurance, contact companies like All Risk Insurance Group.