What kind of business insurance do I need?

Posted in Business

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The best insurance for business owners is quality coverage that caters to your company’s specific needs. From data breach insurance to commercial auto insurance to workers compensation insurance, there are many different types of coverage your business can utilize to protect your employees, customers and assets.

Check out several types of business insurance you should consider and learn what coverage is best for small businesses. We’ll walk you through the most common coverage options as well as some additional insurance types that can save you time and money.

6 types of business insurance

The types of commercial insurance coverage you need for your business will vary depending on the industry demands and the size of your business. For example, a small flower shop will require different coverage than a large distribution center.

Here are six common types of business insurance you should get familiar with before you talk to an independent agent:

  1. General liability insurance
    This coverage protects your business from financial loss in the case of property damage, libel, slander, bodily injury, medical expenses, defending lawsuits and settlement bonds or judgments. It’s not usually required by law, but any business can get general liability insurance.
  2. Commercial property insurance
    For businesses with large sums of assets and property, commercial property insurance is highly recommended. This coverage will help cover costs if your property is damaged due to accidental fire, smoke, high winds, hail storms, vandalism or civil disobedience.
  3. Product liability insurance
    Companies that manufacture, distribute, retail or wholesale a product require product liability insurance. It protects your business from financial loss in the event of a defective product causing bodily harm or injury.
  4. Professional liability insurance
    Businesses that offer services need professional liability insurance to cover loss after negligence, malpractice or errors that result in financial loss for the company.
  5. Home-based business insurance
    Just like the name says, this coverage is for businesses that are ran out of the owner’s home. The coverage is technically added to a home insurance policy to protect a small portion of business equipment and liability coverage for third-party injuries.
  6. Business owners policy (BOP)
    Typically used for small businesses or home-based businesses, BOPs are insurance bundles. You can work with a licensed insurance agent to create a commercial package featuring all your business property and liability coverages. Because they’re bundles, these packages can often save you money.

The types of business insurance that are required vary by state. Whether you need help exploring types of business liability insurance or a basic business owners policy (BOP), talk to a Grange independent agent today to learn what commercial insurance is right for you.

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Additional coverage for your business

Now that you know the basic types of commercial insurance, check out these additional coverages you may want to consider:

Equipment breakdown insurance

If you risk losing income due to technology or equipment failure, equipment breakdown insurance can help. This coverage is a great tool to keep your business running and mitigate costs if a cloud service provider has an outage or if you experience data loss from a service interruption.

Commercial auto insurance

This is coverage for bodily injury and damage to company vehicles if you or an employee causes an auto accident. Covered legal costs and medical bills are just a few elements of commercial auto insurance.

Workers compensation insurance

According to the Insurance Information Institute, workers comp covers the costs associated with medical care for injured workers and some of the income they lose while they are away from work to recover. The laws and regulations for workers compensation insurance varies by state.

Errors and omissions insurance

While the name sounds technical, errors and omissions insurance is simply coverage for your business if you are accused of making a mistake. For example, a breach of contract or oversight in your work can cause problems or disruptions for employees or customers. This coverage helps with costs associated with these liabilities.

Business interruption insurance

If you ever experience a temporary business disruption that concludes with loss of income, business interruption insurance, also known as business income coverage, will help cover the costs to replace that income. From covering training costs to help employees learn new equipment to mortgage payments after a fire on your property, there are many scenarios where this coverage can help.

Cyber liability insurance

Cyberattacks are becoming more common and sophisticated every day. However, ample cyber coverage can help protect your business if your data is compromised. Cyber liability insurance can help shield your business data and the personal information of your customers from cyber criminals. Learn more about preventing cyberattacks.

Depending on the nature of your business, some of these types of commercial insurance may be required by law. For more information or to explore options for your business, talk to a Grange independent agent.

Best insurance for small business owners

There are types of insurance for small businesses that are intentional for protecting small businesses and mitigating risks. Typically, small businesses are more likely to not bounce back after significant business disruptions, errors or injuries. Without the right insurance, out-of-pocket costs for legal help and medical coverage can bankrupt your business. Consider the following types of insurance to protect your small business if you don’t already have it:

  • Workers compensation insurance—offers peace of mind for you and your employees.
  • Small business liability insurance—be sure to include general liability and professional liability coverage.
  • Cyber insurance—great added coverage to protect you, employees and customers.

Choose a Grange independent agent for your business insurance needs

There are countless types of business insurance on the market. Without an experienced, licensed agent, it can be difficult to find the best coverage for your business. Talk to a Grange independent agent to get the help you need for commercial insurance.

This article is for informational, educational and suggestion purposes only. Implementing these suggestions does not guarantee coverage. If any policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies. For full details on Grange’s business insurance coverages and discounts, contact your local independent agent.

Small Business Administration (SBA)
Insurance Information Institute (III)
III Small Business Guide

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