Are you in the market for business insurance?
If yes, you’re making a smart decision. Purchasing insurance is an effective way to manage a wide range of risks that your business faces.
However, the insurance market is awash with several types of business insurance policies. If you don’t know what you’re looking for, it’s easy to feel overwhelmed. Maybe you’ll end up purchasing general liability insurance, thinking it’s all your business needs. That’s not the case.
In this article, we’re sharing the different types of insurance small business owners like you should buy – or at least know about.
Let’s get into it!
1. Business Income Insurance
You’re in business to make an income. What happens if your business operations are disrupted? Your income will also be disrupted.
The COVID-19 pandemic is a good example of an event that can cause disruption to business operations. Millions of businesses remained shut for the better part of 2020. Thousands of these have been unable to re-open even as restrictions ease across the country.
Business income insurance takes care of your loss of income during such disruptions. You’ll receive compensation that will help keep your lights on during the disruption. Before signing on the dotted line, though, ensure you have a clear understanding of the disruptive events covered in your policy.
2. Cyber Insurance
Does your business have a website? Do you use digital systems to executive various business tasks, such as store data?
If yes, your business is a prime target for hackers. 36 percent of cyberattacks target small businesses with fewer than 250 employees. Even with such a staggering number, over 80 percent of small business owners don’t have a cybersecurity plan.
If you’re ready to develop this plan, one of the things you should do is purchase cyber insurance. This policy will provide compensation in the event that a cyberattack causes your business financial losses. Some policies will also take care of liabilities arising from the loss of confidential customer data.
3. Commercial Property Insurance
Whether you’re a brick-and-mortar or an online business, you certainly operate out of a commercial space. This space is central to your operations. What if it’s razed down by fire or burglars break in and steal business equipment?
Commercial property losses can be devastating to any business. The good news is there’s commercial property insurance to cover such losses.
Bear in mind that your commercial property insurance may not cover every type of hazard. For example, flood damage isn’t typically covered. As such, you might need to purchase additional policies for adequate commercial property protection.
4. Professional Liability Insurance
Does your business provide a professional service such as accounting, healthcare, or law? You need professional liability insurance.
If you’re professionally negligent in a certain task, a client can sue you and your business for compensation. If the suit succeeds, you’ll be held liable.
Instead of digging into your pocket to compensate the claimant, your professional liability insurance provider will do it – as long as the amount being claimed doesn’t surpass your coverage limit. APOLLO Insurance has more information on how this policy works.
These Types of Insurance Can Save Your Business
Running a business comes with a lot of risks, most of which can result in massive financial losses. Small business insurance can cushion your business from such losses, but you have to buy the right types of insurance. With this guide, you now know some of the most important business insurance policies.
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