As the owner of a small business, you’re likely aware that business insurance is required by law in a majority of states, including in yours. You’re also probably already aware that without small business insurance, you could be hit with stiff fines and penalties, or worse: the loss of your business.
If a customer takes you to court, an employee is injured or a product is stolen, small business insurance covers the costs. Without small business insurance, you cover the costs, that is, if you can. Small businesses aren’t well known to turn a profit in their first year of business. If your business suffered an unexpected “crash,” would you be able to afford to fix the problem?
Here are four types of business insurance that will cover your business’ assets.
General Liability Insurance
The most common of small business policies, general liability insurance offers policyholders’ protection when a third party (a customer) suffers property damage or bodily injury as a direct result of doing work with purchasing a product from your business. A general liability insurance policy policy will pay for the replacement of the product or property damaged by the business, including any medical fees resulting from bodily injury.
Even if you have complete trust in the quality of your products and believe you don’t need general liability insurance, keep in mind that product failure happens to even the biggest companies. Take Samsung for example. Samsung’s Galaxy Note 7 phones were literally exploding in customers’ pockets. Samsung had to recall the phones and issue new ones to their customers, and now the company is facing a class-action lawsuit.
Professional Liability Insurance
If a customer does not like the work your business did or believes they were taken advantage of, misled, lied to or was physically hurt by the actions of your company, they have grounds to sue your business for negligence. Professional liability insurance, also referred to as Error and Omissions insurance covers your court costs, attorney fees and restitution fees if a customer takes you to court.
According to the Small Business Administration, between 36 and 53 percent of all small businesses face litigation at least once a year. Professional liability insurance essentially helps you to prepare for the inevitable.
Workers’ Compensation Insurance
People get hurt, it’s a fact of life. When people get hurt on the job, it hurts the business too. Workers’ compensation insurance pays for your injured staff member’s medical bills, lost wages and physical therapy treatment. It also covers your business by making up for the financial losses your business may suffer due to your employee’s absence.
Hackers love picking low-hanging fruit, and small businesses are well-known for having lax cybersecurity. Inc. Magazine reports that 89 percent of small business security breaches could have been prevented if said businesses had taken proper cybersecurity measures, such as by conducting electronic business through VPNs and only allowing access through two-part verification codes.
Alas, to ere is human, which is why CoverHound offers cyber insurance through CyberPolicy. Cyber insurance, much like professional liability insurance, covers the cost of attorney fees, litigation and restitution. Cyber insurance also covers the cost of data recovery, equipment damage, cyber extortion and cyber investigative measures.
With the above-mentioned small business policies, your business will be bullet proof. Get a free small business quote today with CoverHound.