5 Types of Insurance That Every Small Business Should Have 

Owning and operating a small business is a challenging endeavor that may prove to be overwhelming. You have many responsibilities – one of which is often overlooked. That is, obtaining the proper types of insurance coverage.

Failure to take this step could result in everything you have worked for and everything you have to become lost.

All it takes is one claim to destroy your business and, perhaps, your life. In this guide, you will be introduced to 5 types of insurance that every small business should have. 

1. General Liability Insurance 

General liability insurance is essential in the event that you, those that work for your, or your products and/or services are deemed “negligent” and result in either property damage or bodily harm.

This coverage protects your small business on claims that occur when your customers are on the property of your business. 

2. Commercial Property Insurance 

Commercial property insurance is necessary whether you own or rent the building where your business is in operation. It protects against numerous perils. Examples include mischief, wind, fire, vandalism, and theft.

If you own the building where you operate, it covers that property. If you do not own the building, it will protect everything that you do own. 

3. Cyber Liability Insurance 

Cyber liability insurance will protect your company’s private information and that of your customers from data breaches. If an issue does occur, it will pay for the notification required to employees and your customers.

Your coverage requirements will be based on how you use technology in your business and the types of technologies that you use. 

4. Workers’ Compensation Insurance 

If your employees experience an injury while working, Worker’s Compensation insurance will provide the replacement of wages as well as any necessary medical-based benefits. It also protects you against being sued by your employees. 

5. Loss of Business Income 

If you end up going out of business for a short period of time, you will benefit from Loss of Business Income insurance. This is designed to cover the net profit that you would have made if your business remained opened.

It is identified as the “Actual Loss Sustained”. This type of insurance would be effective if – for example – a fire burned the building where you operate. The profits that you receive would help give you additionally funding while you go through the actual recovery process. 

Contact Us Today 

We here at Modica Associates are standing by to assist you in discovering the insurance that you need for your small business. We will create a partnership with you and learn as much as we are able to about your small business needs.

We will then create an insurance plan that outlines what we feel you need and will work to get you the absolute best rates.

In addition to the above-listed insurance types, other types may include commercial auto insurance, transportation insurance, and construction insurance. To learn more, we recommend you calling us now at: 718-855-1836

Recent Posts