What Kind of Small Business Insurance Do I Need?

COSTA MESA, Calif. - Oct. 30, 2019 - PRLog -- Most small businesses need general liability insurance (https://smartfinancial.com/What-Is-General-Liability-Insurance), business owners policy and commercial auto. You should also explore health insurance for small business owners, which may be required depending on the size of your company. If you have employees, you will have to meet federal law requirements: You will need to carry workers compensation, unemployment and disability insurance.

A general liability policy will cover you for bodily injury, property damage and data loss. You will be protected against lawsuits and liabilities associated with your product or service. You'll also be protected against advertising injury and contract liability.

A simple trip-and-fall accident can become catastrophic if you don't have general liability insurance for your business. In some professions it's even common to require employees to carry their own general liability insurance as well as having one in place for the company at large.

What Is Business Owner's Policy (BOP) for Small Business?

A BOP bundles coverages together to customize a policy. Usually, a BOP includes general liability, business property insurance and commercial interruption insurance. You can only buy a BOP if your company employs fewer than 100 employees, grosses less than $1,000,000 a year in revenue and is not considered a high-risk business.

A BOP will not only protect you against the types of lawsuits associated with your industry, but it will also cover damages to a client's personal property.

You can expand the coverage terms of your BOP by buying endorsements. For instance, liquor liability insurance is common for a restaurant or cafe. Cyber liability insurance is becoming a staple for many companies. Cyber attacks are the reality of today's business environment, and cyber liability insurance is increasingly being bought to protect sensitive data. Cyber attacks are not covered by general liability insurance.

Do I Need Commercial Auto Insurance?

Should you list the car under your personal auto coverage and never think twice about business auto insurance? It's best to find out how your insurance company would handle a claim if you were to have an accident in that vehicle while using it for business-related reasons. Or worse yet, what if an employee had an accident while using it for work-related reasons?

If you use your vehicle for personal and business reasons, many insurers will allow you to cover the car on your personal insurance policy with a small surcharge but some insurers will not cover you at all if you have an accident.

You need to first establish a good relationship with a commercial business insurance agent who will guide you through the myriad details before you make any decisions. Compare business insurance quotes (https://smartfinancial.com/commercial-insurance) and you'll be connected with one of our partner agents.