If you own a small business, you might be wondering what types of insurance you should have so that you, your employees, and your assets are protected. There are many different types of insurances out there, and it can be overwhelming to know how much protection is too little, and how much is just unnecessary for your particular business. However, there are some basic types of insurance that every kind of small business needs to consider.
General Liability Insurance
No matter how small your business is, you need to have liability insurance because it will protect you with defense and damages if you, your employees, or your products cause or are said to cause harm to anyone.
If you are employing anyone, it is very important to have worker’s compensation insurance. It will provide insurance to employees who are injured on the job and it provides them with financial replacement and medical benefits instead of allowing the employee to sue you for the incident. Even if you trust your employees and don’t think they would ever get hurt or do anything to hurt you, this is a type of insurance that you need. Things happen you don’t want to get into a lawsuit or a situation of non-compliance.
Professional Liability Insurance
Professional liability insurance is also known as professional indemnity insurance or errors and omissions. You need this type of insurance if your business provides any kind of service or advice. This insurance will protect you against a client who is making a negligence claim.
This type of insurance is important if you own your own your own business building, but it can also be important if you have any sort of equipment that belongs to your business such as computers or inventory. Property insurance will protect you if your space or business-related property is damaged, stolen, or vandalized.