5 Types of Business Insurance For Small Businesses

Business insurance protects your company from financial disaster. It covers costs like employee injuries, property damage and data breaches. Without it, your business could face bankruptcy.

The most common types of business insurance include workers’ comp, general liability and commercial property. NerdWallet recommends coverages that are specific to your industry.

Workers comp insurance

Workers’ compensation insurance, or simply workers comp, pays for the medical costs of employees who are injured in the course of working for your business. It also helps pay for lost wages while they are recovering from an injury. It’s required in most states. One claim can bankrupt a small business, so it’s important to have this coverage in place. Some states even require it before you can get a business license.

There are a few ways to get workers’ comp for cheap. Some insurers offer it in a package with commercial property insurance or general liability insurance, called a business owners policy (BOP). You can also purchase it separately. Another option is to shop with a provider that offers specialized types of insurance, like directors and officers insurance. These companies often offer a single online quote for all the coverage you need.

Some providers also include optional endorsements for your business. For example, the Hartford offers data breach coverage, while State Farm allows you to add professional liability insurance to a BOP. In addition, some businesses may need special insurance for vehicles that are used on business. This is usually included in a commercial auto insurance policy. Lastly, you should check with your lender or landlord to see what type of business insurance they require. Some lenders, contractors, and landlords will not work with a company that does not have adequate insurance.

Business liability insurance

Whether you’re a one-person home contractor or a multi-national corporation, every business faces risks. That’s why it’s important to have business insurance coverage. Getting the right policy for your business can help you avoid costly lawsuits and other issues. While the type of business you run and its size are fixed factors that influence your rate, there are ways to keep your premiums low. These include limiting the number and size of claims you file, keeping your workplace safe and following good practices in your industry.

If you want to buy a cheap business liability policy, shop around with several insurance companies to compare quotes. Some insurers offer a one-stop online shopping experience that makes it easy to get a quote and buy coverage. Some also offer additional discounts if you purchase multiple policies.

Many small businesses can get by with a general liability insurance policy. This type of coverage protects a business from claims for property damage or bodily injury. It can also pay for medical expenses and legal fees that arise from a claim. Some policies also cover the cost of a settlement bond or judgment. Some even cover copyright infringement and libel or slander.

Some businesses can save money on their liability coverage by purchasing a combined package policy, known as a BOP. This usually includes general liability, business interruption and property insurance in a single package at a lower price. However, you should make sure to review the policy details carefully and understand what is and isn’t covered.

General liability insurance

General liability insurance is one of the most important types of business insurance for small businesses. It protects businesses from claims resulting from bodily injury, property damage and copyright infringement. It also pays for legal fees and settlements that arise from litigation. Liability claims can bankrupt a small business, and this policy helps shield the company from financial ruin.

It’s possible to buy general liability insurance as a standalone policy or in combination with other policies, such as commercial auto and business property coverage. These packages are often cheaper than purchasing a single type of insurance. However, make sure to review the policy limits carefully. The higher the limits, the more protection your business will have from expensive claims.

You can find a cheap business liability policy by shopping around and comparing quotes. Insurance companies take many factors into consideration when pricing a policy, such as the size of your business and your record of previous incidents. Newer businesses usually pay more than established ones, but a clean claims history can lower your rate.

The Hartford offers a wide variety of business insurance, including general liability and commercial property. Its online quote tool is easy to use and can be customized for your needs. It also offers bundled policies for specific industries, such as construction and hospitality.

Product liability insurance

Just about any business can find itself at the wrong end of a lawsuit alleging that one of its products caused injury or property damage. Product liability insurance protects a business when someone files a claim against it over a defective product that is manufactured, sold, distributed or repaired. This coverage pays for medical expenses, legal fees and settlement bonds. It can also cover legal expenses for libel and slander. It can also include coverage for the cost of a recall.

Some types of insurance companies only offer this type of protection to manufacturers and wholesalers, while others are more general. This type of coverage is often included in comprehensive general liability (CGL) policies. It is also available as a separate policy or an endorsement. Some companies require their contractors to have it, especially if the project involves installing or repairing certain kinds of equipment or materials.

When evaluating product liability quotes, consider the amount of money the insurance company will pay for a single incident and how much the company will reimburse for each claim. Make sure the limits are sufficient to meet your business needs. Also, select a deductible that won’t put your business in financial difficulty if you have to file a claim. Tivly compares quotes from multiple providers, matching you with the best options for your unique needs.