For small business owners, insurance coverage is vital to protect your company against the unknown. Even if you have a Businessowners Policy (BOP), you may need to purchase additional policies to make sure you're fully covered.
Which ones do you need? Because every company faces unique risks, the best way to choose is by speaking directly with an insurance agent who can help you prioritize coverage. A good place to start the conversation is with common policies many small business owners choose to buy.
1) Property Insurance
This policy generally covers losses or damage to your physical business. If there's a fire in the building, or someone breaks in and steals valuable equipment, you may be compensated for the loss if you have property insurance.
2) Liability Insurance
If you're sued by a customer who claims your company has caused harm to them or their property, liability insurance can help protect you from monetary loss. Your policy can help pay damages you're found responsible for, as well as the cost of your defense expenses, including a lawyer.
3) Business Auto Insurance
Do you have a company vehicle? If so, a business auto insurance policy may be an important way to protect your business. It covers bodily injury or property damage expenses if your company is found liable. You can also consider talking to your insurance agent about additional coverage if you carry valuable tools or equipment in your vehicle.
4) Workers' Compensation Insurance
If you're a small business owner anywhere in the United States, except for Texas, you're required to have workers' compensation insurance when you employ a certain number of employees, according to the Insurance Information Institute. This number usually ranges from three to five, depending on where you live. This coverage — often referred to as “workers' comp” — pays for medical care and part of lost wages if one of your employees is injured while working for you. Talk to your insurance agent about the best workers' comp policy for you.