Many people who are on their journey to millions own or operate small businesses. Some may be a part of a small business as an investor, other people may own and operate a small business as their main source of income. No matter how you are involved with a small business, there are certain insurance policies you must have to properly protect your business. Here are five types of insurance all small businesses should strongly consider.
General Liability Insurance
General Liability Insurance protects your business from many of the liability you face to third parties who come in contact with your business. This can be something as simple as a person tripping on the steps as they walk in to your business or it could be as complex as a tree on your property falling onto the building of the business next to yours and demolishing the server their website is stored on. The one thing to remember about general liability insurance is that it is not all encompassing. This is where having a thorough conversation with your insurance agent is important. They can help you determine what risks your business face that are not covered by a standard commercial general liability insurance policy.
Workers’ Compensation Coverage
Workers’ Compensation Insurance is usually the second policy all businesses look to secure. This is because both general liability and workers comp coverage are both required by law for most businesses in most states. Some states do have exclusions that allow some businesses to not carry coverage if they meet certain requirements. In most cases, it is still a better idea to secure coverage. Workers Compensation is similar to general liability, but it deals with the liability your business faces to injured employees. When your business has an injured employee, a workers’ compensation policy will cover most medical expenses and some lost wages while an injured employee is not able to work.
Employment Practices Liability Insurance (EPLI)
EPLI is an acronym for Employment Practices Liability Insurance. This type of insurance coverage is a form of professional liability designed specifically to address the unique risks associated with hiring, employing, and terminating employees. According to Trusted Choice, employee lawsuits have increased by 400 percent during the past 20 years. A lawsuit against your business does not have to be founded to cost your business immensely. An EPLI Policy can kick in to help in the unfortunate event an employee sues your related to employment issues.
Business Income and Expense Coverage
A Business Income and Expense Insurance Policy is a type of insurance policy that will cover your business for loss of income suffered by a business when damage to the property by a covered loss causes a slowdown or suspension of operations. An example of when this policy would be necessary is if a business’s building experiences a fire or natural disaster, the policy will kick in to cover the missed revenue while the property is being repaired or rebuilt.
Data Breaches are no longer just a problem for big businesses. Two of the biggest breaches in history were started by hackers first targeting a small business where they later got access to a much larger business’s database through a vendor partnership. This is becoming a common way criminals access large databases because most big businesses are implementing adequate cyber security measures. Because of this fact, it is important for all small businesses to think about securing cyber insurance.