Types Of Small Business Insurance
Starting a new Small business Insurance is an exciting time, and you’ll want to choose the best type of small business insurance policy to protect your company from the potential costs of claims, damages, and litigation. Here’s a roundup of important small business insurance policies.
Business Liability Insurance
General liability insurance protects small businesses from property damage and bodily injury claims. As a small business owner, you may be legally responsible if someone damages property while visiting your business, company or store. And if your business is responsible for someone’s injuries (including employee injuries), general liability insurance will also pay for their medical bills and lost wages.
Other claims handled by general liability insurance include reputational damage, advertising injury and copyright infringement.
With the help of a business liability insurance policy, your small business will be able to maintain financial stability should you be sued by a customer or another business. A general liability policy also pays for your legal expenses with settlements and judgments.
Financial lenders, landlords, licensing boards and business clients require general liability insurance before doing business. So there are many reasons to put professional general liability insurance at the top of your to-be-insured list. A general liability insurance certificate will show that you are properly insured.
A general liability insurance policy costs an average of $42 per month, according to Insuron. Small Business Insurance
Commercial property insurance
A commercial property insurance policy protects the physical location of your small business and your business equipment, computers and office furniture. Both owned and leased business equipment are covered by this policy.
Running a small business takes a lot of time and a commercial property insurance policy covers a lot. Tools, inventory, supplies, valuable papers and business records are all covered. Commercial property insurance also covers outdoor fixtures such as signs and fences.
A commercial property insurance policy generally covers damage to your small business property caused by perils such as lightning, wind, hail and fire. Commercial property insurance also covers acts of theft and vandalism.
According to Insuran, the average cost of a commercial property insurance policy is $63 per month.Small Business Insurance
Business interruption insurance
A business interruption insurance policy replaces lost income from a small business if you need to shut down temporarily due to damage covered by the policy, such as lightning or fire. Other perils covered by business interruption insurance include theft, wind and falling objects.
If any of these issues affect your small business, business interruption insurance pays for money lost due to damaged merchandise, lost earnings, and additional expenses such as temporarily moving the business to a new location.
This is also called business income insurance.
According to Insurer, business interruption insurance ranges between $40 and $130 per month.
Commercial Auto Insurance
Commercial auto insurance is essential for cars, trucks and vans used for your small business.
Personal auto insurance policies generally exclude any business uses of the vehicle. That’s why getting a commercial auto insurance policy is so important if you have a company car, truck or van that you use for business purposes.
If you fail to obtain business auto insurance for work vehicles, any claim you make may be denied. You will pay for any accidents and other damages on your own, which can be very expensive.
According to Insuron, commercial auto insurance costs an average of $142 per month.
Hired and non-owned auto liability insurance provides liability coverage when employees rent or use their personal cars for business purposes.
Because any driving you do for business will not be covered by a personal insurance policy, it is essential to purchase hired non-owned auto liability insurance if you are renting a car for work or driving your own car for work purposes. Doing so will get you the insurance coverage you need and save you from a hefty insurance claim if you are at fault for an accident while driving for business.
Cyber Liability Insurance
A cyber liability insurance policy helps cover the costs of cyber attacks and data breaches. Suppose some private customer information is leaked from your company’s database. If a customer files a claim against your company, cyber liability insurance will help pay the costs. Cyber liability insurance will also help pay for things like notifying customers affected by a data breach and offering them free credit monitoring.
The average cost of cyber liability insurance for small businesses is $140 per month, according to the insurer.
Errors and Omissions Insurance
If your small business provides professional services or advises clients, it is a good candidate for errors and omissions insurance.
Errors and omissions (E&O) Small Business insurance pays for expenses resulting from mistakes you make in your work. This insurance is also known as professional liability insurance.
Errors and omissions insurance will pay customers who make claims against your small business. Such errors include misrepresentation, breach of good faith and fair dealing, negligence and giving false or inaccurate advice.
It also pays for legal defense costs, judgments and settlements.
Without E&O insurance, you’ll be on the hook to reimburse clients and pay for a lawyer out of your own pocket.
What types of small businesses would benefit from errors and omissions insurance coverage? Here are some examples:
• Advertising agencies
• Graphic designers
• Interior decorators
• Management and Business Consultant
• Real estate agents
• Tax preparers
• Technology professionals
• Travel agents
According to Insureon, the average cost of errors and omissions Small Business insurance is $59 per month.
Technology Errors and Omissions Coverage
If you work in the technology field, you may be able to purchase an errors and omissions policy specifically for your type of work. Technology errors and omissions Small Business insurance pays legal and other expenses from claims made by customers against a small technology business.
Types of small business technology professionals can benefit from include:
• Computer consultants
• Internet service providers
• IT contractors
• Software developers
• Website developers
According to the insurer, the average cost of technology errors and omissions insurance is about $60 per month.
Can Hartford help me get small business insurance in my state?
We proudly partner with thousands of small business owners across the country. If you’re looking for more information on how to get small business insurance where you live, check out our state business insurance page.
Do I need small business insurance for my LLC?
Registering your business as a limited liability company (LLC) does not protect your business from risks. We designed our LLC insurance specifically for small business owners. It can help cover you from catastrophic financial losses.
What Insurance Do You Need When Starting a Small Business?
There are three essential types of business insurance you may need when starting a Small Business insurance
- General liability insurance
- Business Property Insurance
- Business Income Insurance
Our BOP bundles these three types of business insurance together to make it easier for you to protect your company.
Why Small Businesses Can Trust Hartford
Not all insurance companies provide the same level of service. With us, you’ll find that we’re more than just an ordinary insurance company – we’re a partner. We’ve been dedicated to small business owners and protecting consumers for over 200 years. We can help you find the right type of business insurance for your company.
Our representatives consistently earn some of the industry’s highest ratings and reviews for customer claims. We’ve also been recognized by Ethisphere as the World’s Most Ethical Company 13 times.**
To find out how we can help protect your business, get a small business quote today.