6 Types of Insurance Every Small Business Should Have
Running a small business can be risky. Many things could go wrong, from fires and natural disasters to theft and product liability lawsuits. That’s why small business owners need to have insurance. Many small business owners think they can’t afford insurance, but the truth is that not having insurance can be even more expensive. Also, some types of insurance are required by law. Here are six types of insurance every small business should have.
1. Property Insurance
If you own a small business, you need to have property insurance. This type of insurance will protect your business in the event of a fire, natural disaster, or theft. It will also cover any damage that occurs to your office or store. Property insurance is generally very affordable, and it’s well worth the peace of mind it can provide. By law, most landlords require their tenants to carry property insurance.
2. General Liability Insurance
Many small business owners think they don’t need liability insurance because their business is small. But the truth is that any business can be sued, no matter how big or small. General liability insurance will protect your business in the event of a lawsuit. It will also cover any damage to someone else’s property while you are doing business on their premises. General liability insurance is very affordable, and it’s a good idea to have it even if you don’t think you need it.
3. Loss of Business Income Insurance
If your business is forced to close due to a fire, natural disaster, or another event, this insurance will help you cover your lost income. It’s essential to have this type of insurance because it can take a long time for a small business to recover from a major setback. Loss of business income insurance is relatively affordable and can save your business from financial ruin.
4. Workers’ Compensation Insurance
If you have employees, you are required by law to carry workers’ compensation insurance. This type of insurance will cover your employees if they are injured while working for you. It will also cover their medical expenses and lost wages. Workers’ compensation insurance is very affordable, and it’s a good idea to have it even if you don’t think you need it.
5. Cyber Liability Insurance
By law, all businesses are required to have cyber liability insurance. This type of insurance will protect your business in the event of a data breach or cyber attack. It will also cover any damage that occurs to someone else’s property as a result of your negligence. Many small business owners think they don’t need cyber liability insurance because their business is small. But the truth is that any business can be hacked, no matter how big or small it is.
6. Umbrella Policy
An umbrella policy is a type of insurance that provides additional coverage above and beyond your other insurance policies. It’s a good idea to have an umbrella policy if you have many assets or are at risk for lawsuits. According to experts, Umbrella policies are relatively affordable and can provide peace of mind in the event of a major catastrophe.
Many other types of insurance are available, but these six are the most important for small business owners. By law, you are required to have some of them. And even if you’re not required to have others, they can still save your business a lot of money in the long run. So don’t wait – make sure your small business is properly insured today.