What insurance is needed for a small business?

Business insurance is an important requirement for every business. It offers protection for your business investments, for property, transactions and employees. Like other insurance products, business insurance policies must be adapted to the needs of your company and its operations.

General civil liability

General civil liability must be purchased for all businesses. This insurance covers legal damages that may arise from claims of negligence, injury and property damage. This coverage also protects your company from medical expenses, lawsuits, obligations and rights. General civil liability is selected based on coverage limits. While large companies can select a high limit of liability, smaller companies can choose a smaller package. Your agent or insurance broker can help you in the selection of the limits that meet the needs of your business.

Product Responsibility

Product liability coverage provides protection against damages that may arise from a defective product. Companies can be held liable if the product or service causes personal injury or damage. Therefore, it is important that you select this coverage for your business. Companies such as manufacturers, wholesalers, distributors and retailers often choose this coverage. Liability for negligence, breach of express or implied warranty, defective products and defective warnings and instructions are insured under this coverage.

Workers Compensation

Workers’ compensation insurance covers the medical expenses and lost wages of your employees if they are injured at work. This coverage is required in all states, except in Texas. In addition, each state sets its own minimum requirements for workers’ compensation coverage, which include the required payment rate and types of employees that require coverage. In most cases, business owners, independent contractors, domestic employees in private homes, farm workers and unpaid volunteers are exempt from this coverage. It is important that you speak with your agent or insurance broker to obtain information.

Business interruption insurance

Business interruption insurance covers losses that occur as a result of your company being considered inoperable. Generally, business interruption insurance can only be activated when there is an open claim in your policy for the loss of your business. Coverage is purchased as a backup to the business owner’s policy. This coverage includes reimbursement of utility costs, water expenses and other expenses that continue to be generated even when your company is unable to earn income.

Criminal insurance

Criminal insurance and employee bonuses can help protect your business from criminal activity. This coverage provides protection against acts of theft, hacking, vandalism, common general robberies and employee misappropriation. While criminal insurance is a fundamental coverage to own, it is not a required insurance coverage. This coverage is usually added to the business owner’s policy as a backup.