In the Event of Disaster: 8 Types of Business Insurance to Consider as a Small Business Owner

Business owners should never try to save money when they’re purchasing business insurance. Many situations, including accidents and non-functioning equipment, can spell disaster for a small business owner. If they don’t have the necessary insurance, they can easily lose the business.

Small business insurance protection

Read the information below to learn about eight types of insurance that business owners should seriously consider.

1. General Liability Insurance

Business owners who purchase general liability insurance stay protected from lawsuits that pertain to bodily injury if someone sustains injuries while on the premises. Property damage coverage goes into effect if someone claims a business owner damaged or destroyed their property. Personal advertising injury coverage safeguards business owners from litigation concerning slander and false advertising. Business owners can contact a qualified agent at tspeck.com to discuss the specific terms of a general liability policy.

2. Commercial Property Insurance

If a disaster occurs that damages or destroys a commercial building or the property, commercial property insurance covers the losses. Many small business owners cannot afford to rebuild or purchase another piece of land using their own funds, and this tragedy could put them out of business. Besides paying for repairs or for the construction of a new building, this insurance covers the replacement of the building’s contents, such as furniture, computers, and inventory.

3. Business Interruption Insurance

This insurance protects business owners when a disaster strikes and causes business owners to lose revenue. Unpaid bills can mount up in a hurry, especially when the business closes because of a disaster. With the purchase of this policy, it pays the company payroll and bills until the business recovers from the disaster. There are different business interruption policies, including standard, extended and contingent. An agent can help business owners decide which policy best suits their needs.

4. Commercial Auto Insurance

Business owners who use vehicles for their business should always have commercial auto insurance in case there is an accident involving a company vehicle. Legally, business owners must have liability insurance, and they can also purchase additional insurance for their vehicles, including collision, comprehensive, and medical. Those who only drive their vehicles certain times of the year can save money by opting for seasonal coverage.

5. Workers Compensation

Any business owner who has employees on the payroll must, by law, have a current workers compensation policy. When a part-time or full-time employee experiences injuries while performing their job duties, this insurance takes care of their medical bills and salary. With this insurance in place, employees normally cannot file legal proceedings against the company. In certain situations, if the employee sues the business, this insurance assists the business owner with paying for legal counsel.

6. Employment Practices Liability Insurance

When business owners have employment practices liability insurance, they’re reimbursed for any legal fees and settlement judgments because of discrimination lawsuits. Even if the business owner has a not guilty verdict, the legal fees to fight these charges are astounding. Other types of lawsuits covered include harassment, wrongful termination, and emotional distress.

7. Equipment Breakdown Insurance

If a business owner relies on machinery and equipment to get their products out, an equipment failure can hurt business profits. Business owners who pay for equipment breakdown insurance can get their equipment repaired or replaced quickly so the business can continue as normal. If additional problems arise because of the equipment malfunction, the policy may also cover these situations.

8. Cyber Insurance

With the expansion of technology, business owners should seriously consider cyber insurance in case of a data breach. Additional types of coverage that are available include privacy, network security, and extortion. Business owners can also request policies that cover legal expenses because of trademark and copyright issues.

Because of the increase of lawsuits and unforeseen disasters, insurance is a top priority for small business owners. Experienced insurance agents can help business owners of every size choose the best policies with the right coverage.

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