Entrepreneurs are facing many challenges that put their businesses at risk. however, small business insurances are a great strategies to help secure the business.
When an entrepreneur apply for small business insurance, his or her coverage decisions will depend on the business’s type and size. The following are common types of small business insurance coverage.
- General liability insurance, gives a business protection against liability claims, for instance bodily injury and property damage to others. General liability insurance also covers for legal costs, such as hiring an attorney and any judgments against an entrepreneur and business. The insurance includes coverage for damage to reputation such as stander or libel and copyright infringement.
- Commercial property insurance, also known as business property insurance, covers the physical property of a small business against fire damage or theft. Commercial property insurance covers a number of business items including office, building, computers, workstations, desks, chairs, business records, business inventory and supplies.
- Workers compensation insurance, offers coverage for when an employee becomes ill or injured because of their job. Workers compensation insurance offers several benefits, includes medical care, physical therapy and compensation for lost wages, to employees who are sick or injured because of their jobs. It also includes benefits or compensation for an employee’s family, if an employee passes away from a work-related illness or injury.
- Commercial auto insurance, covers the vehicles the business owner uses for business purposes.
- Errors & omissions E&O, cover for liability costs if a client accuses the business of committing a mistakes in professional services.
- Inland marine insurance, protects business property that’s being transported over land.
- Cyber liability insurance, provides cover for recovery costs if biasness’s computer system and data gets hacked.
What Does Small Business Insurance Excludes
An entrepreneur must be aware that there are instances where small business insurance doesn’t offer coverage, such as:
- Flood damage to a business
- Fraudulent and intentional acts
- Wrongful termination
The following are the best small business insurance companies in the United States, with no specific order:
- Best Overall: State Farm
- Best for Independent Contractors: Hiscox
- Best General Liability Insurance: Nationwide
- Best Workers’ Compensation: The Hartford
- Best Commercial Property Insurance: Travelers
- Best Business Owners Policy: Liberty Mutual
- Best Commercial Auto: Progressive Commercial
Furthermore, the insurance an entrepreneur receive from choosing a business structure, for instance a limited liability company LLC or a corporation, typically offers limited protection for entrepreneur’s personal property from lawsuits.
However, small business insurance can cover and protect both entrepreneur personal assets and business assets from unexpected catastrophes.
In some instances, in the United States an entrepreneur might be legally required to purchase certain types of business insurance.
The United States federal government requires every business with employees to have workers’ compensation, unemployment, and disability insurance.