Shopping for business insurance? With so many different options, it can feel overwhelming to figure out what insurance options are best for your business. Depending on the type of business, your city, county and state may have insurance requirements. Your city, county, or state should have an office of small business that you can reach out to for questions, or contact your local SBA office, Women’s Business Center, or SCORE office. We also recommend leaning on your network to find a reputable insurance agent to discuss your options.
Types of Business insurance:
General liability insurance
A standard type of business insurance is general liability insurance. This policy can help protect your company’s assets and might be needed for certain contracts, including if you are leasing a commercial property.
Who it’s for: General Liability Insurance protects every type of business, including if you have a home-based business. Every business owner should consider General Liability Insurance.
Business Owner’s Policy (BOP)
A Business Owner’s Policy is an insurance package that combines typical coverage options into one bundle. A BOP can help to save you money while protecting your business. Typically, a BOP covers general liability insurance and commercial property insurance. Commercial property insurance protects your building, equipment, and inventory from damage or loss. A Business Owner’s Policy is also flexible, meaning you can add other types of insurance to cover risks specific to your business. Talk to an insurance representative to review what types of policies your business might need.
Who it’s for: A Business Owner’s Policy is a great option if your business needs different types of insurance. Bundling your insurance can save you money while keeping your business covered.
Professional Liability Insurance
Professional Liability Insurance is also known as errors and omissions insurance or malpractice insurance. However, professional liability insurance isn’t just for lawyers or doctors. It’s possible that your business commits an error with a client, causing them to lose money. Professional Liability Insurance covers these instances. This type of insurance may also be required by your state.
Who it’s for: Professional Liability Insurance covers instances where your customer or client loses money due to your mistake. Talk to experts with businesses like yours to see if you need professional liability insurance. Some examples of business owners who should consider this type of insurance include: hairstylists, consultants, notaries, accountants, and real estate agents.
Product Liability Insurance
If you make or sell a product, you should consider Product Liability Insurance. Product Liability Insurance protects your business against financial loss as a result of a defective product that causes injury or bodily harm. This policy can be added to a Business Owner’s Policy or to your General Liability Insurance.
Who it’s for: Businesses that make or sell a product.
Four steps to consider when buying business insurance
- What are your risks? What kind of accidents, natural disasters, or lawsuits could damage your business? There are numerous resources that can help you assess your risk. Some of them include, NFIB and SBA.
- Find a reputable licensed agent. Commercial insurance agents are a great resource to help you find the right policy for your business. Commercial insurance agents do receive commissions from insurance companies, so it’s important ot find a licensed agent that is interested in your needs as much as their own. Ask your network if they’ve worked with an agent they can recommend to you.
- Shop around. Prices and benefits can differ so compare rates, terms, and benefits for offers from different agents.
- Reassess every year. As your business grows, so do your liabilities and risks. Purchasing new equipment? Changing or expanding your operations? Contact your insurance agent to see how changes in your business may affect your coverage.