Most small businesses need General Liability and Property Insurance at the very least. If you have employees, you’ll probably need Workers’ Compensation Insurance as well; most states require it. Commercial Auto is important if you or your employees drive for your business.
Most business owners have a good idea of what tools, equipment, materials and technology they need to run their business. But they don’t always know what types of insurance they need and how much coverage is appropriate to help protect their business.
If you’re running a small business, or plan to, you probably know about some of the common perils you may face. Accidents happen and things break every now and then. Liability lawsuits are fairly common now. And the changing climate continues to produce devastating weather events resulting in record level property damage claims. Much of a business’s success is based on its resilience through adversity. So it’s up to you to take the steps to ensure your business will prevail through the most likely perils, and especially the ones you don’t expect.
Small business insurance can help your business survive and prosper through the toughest times. It can help cover the costs of liability claims and property damage. Without it, you may have to pay those costs with your own business and personal assets. If you think you can handle the expenses on your own, just remember that the cost of an average, paid liability claim is $15,000.1
At a minimum, consider buying General Liability and Business Property insurance for your small business. Or you can get a BOP – a Small Business Owner’s Policy – which contains both in a single policy. Consider Workers’ Comp Insurance if you have employees; it’s mandatory in most states. If you or your employees will be driving for work purposes, you’ll want Commercial Auto Insurance as well. Once you have these primary coverages in place, consider the risks that are unique to your business and look into adding coverage to fill in any gaps your primary policies don’t cover.