Business
3 Types of Insurance That Every Small Business Needs to Have

Small businesses are exposed to a great number of risks daily. They must protect themselves from liability, theft, and lack of business interruption. They must also ensure their employees are adequately compensated for injuries on the job.
There are several types of business insurance, each focusing on a different kind of risk. You may need several policies, depending on your industry and the activities you are engaged in. Here we will discuss three types of commercial insurance that every small business needs and why you should consider them.
1. Workers’ Compensation Insurance
Workers’ compensation insurance pays for the medical treatment and other costs associated with injuries suffered by employees. It is required in all states except Texas. The coverage is mandatory to ensure that employees are appropriately cared for after injury. It also protects employers from lawsuits that may be filed against them by an employee or a third party.
The best way to protect your business is to prevent injuries from happening in the first place. Arrange for safety inspections at your workplace and follow proper safety protocols. Inspect equipment for defects before using it and have defective parts repaired or replaced immediately. Ensure all required warning labels are visible to employees, contractors, and visitors. This includes any toxic chemicals that may be present on site. Keep an emergency phone number posted at all times so that employees can call emergency services in case of an accident.
2. Commercial Property Insurance
Commercial property insurance protects your business’ real estate and its contents against physical risks. These risks include fire, theft, storms, and vandalism. Your business buildings and office equipment represent a great deal of your business’ value. Most policies cover damage to the building itself and the contents of the building.
This insurance is most often purchased as part of an umbrella policy. These policies combine several different types of business coverage, which can help you save money on premiums. Some forms of commercial property insurance are cheaper than others because they are more specific to the risks facing the owner of a particular property. A reputable insurance agency will work with you to develop a policy that protects the asset you are most concerned with.
3. General Liability Insurance
General liability insurance provides coverage against claims related to negligence. This insurance covers you if someone is injured due to something directly related to your business, such as the building where your company is based or a product you sell. General liability insurance can also help pay for legal fees, court costs, and other expenses related to any lawsuit.
Small businesses often do not have the financial resources to pay for such expenses. General liability insurance can be purchased on various levels, which will help you determine how much coverage you need based on your company’s investment in its property and equipment. The more you invest, the more liability protection you will need.
Small businesses should purchase the proper insurance to ensure their employees’ and assets’ safety and security. This is especially important when you are starting up or expanding your company. If you need help putting together a policy, a reputable agent should help you get the coverage you need.
