What Types of Insurance Do Small Businesses Need?

Businesses need

There are a number of risks associated with starting a business, even a small one. That is why acquiring the right type of insurance policy, or policies, is a major consideration for a small business owner.

Although insurance is something you hope to never use, it is essential to have the right type of coverage in place when disaster surfaces. That will allow your business to continue to thrive while protecting the employees and owners if something unforeseen and catastrophic should occur.

Below is a list of insurance options that small businesses should carry:

General Liability Insurance

While not required, every business should invest in general liability insurance. That includes start-up and home-based businesses. General liability insurance covers you and your business by providing protection if a third party alleges that you, your employees, your products or your services have caused bodily injury or property damage. Losses covered include physical injuries on business property, property damage to a third party or business while carrying out your work, and injuries as a result of advertising, such as libel, slander, and defamation-of-character litigation.

Property Insurance

Commercial property insurance covers your building and any business property stored inside against loss or damage. That includes computers, printers, tools, and much more  If your small business has a brick-and-mortar location, property insurance is essential. Not only does it cover theft, fire, vandalism and weather-related damage, but policies can include coverage for flooding and accidental damage. Check with your provider if your property insurance covers natural disasters such as earthquakes, floods, or tornadoes because not all of them do.

Worker’s Compensation Insurance

This type of insurance is required by all states for all businesses. In the event that employees are hurt or injured while carrying out work-related duties, this covers their medical expenses, as well as pays them a portion of their wage as they recover and recuperate. Failure to purchase the required amount of insurance coverage mandated by your state can lead to fines or even criminal penalties. Consult with a reliable small business insurance broker to learn about the law in your state.

Unemployment Insurance

This is another type of insurance that is required by the government for all businesses to have. In case of job termination or loss, unemployment insurance protects your employees. Keep in mind, though, that this type of insurance cannot be purchased from an insurance carrier. Instead, employers pay something called federal unemployment taxes or FUTA and state unemployment taxes (SUTA), and the state administers the program for both employees and their employers.

Disability Insurance

This type of insurance is currently required in five states: New York, California, Hawaii, New Jersey, and Rhode Island. In these states, employers are mandated to provide short-term disability insurance for three to six months after an employee falls ill or has been injured, even if it is not work-related. It ensures that employees are able to receive a portion of their income even when they are unable to work. While it is not required in all states, having this type of insurance can make your business a more attractive prospect to job-seekers and gives you a competitive edge.

Don’t let your small business fall prey to avoidable risks and make sure to avail yourself of these 5 types of insurance coverage today. Quote Commercial Insurance can help with that. Our company provides business insurance, commercial property insurance, as well as worker’s compensation insurance. For inquiries and more information, contact us online or give us a call at 844-331-7076 to get started.