Only about one-third of new businesses survive to the 10-year mark. Too often, businesses fail because they don’t have the right insurance to withstand common catastrophes and setbacks.
Understanding the types of business insurance available to you is the first step in beating the odds and protecting your business for the long haul. Here are the most common types and what you need to know about them.
Property insurance is perhaps the most well-known type of small business insurance. It protects your physical property, such as your campus and equipment, from disasters such as:
It is important to be aware, however, that it does not necessarily cover every hazard your business may face. Common hazards like floods and earthquakes may be excluded from standard coverage. Business owners need to read their policies with care and select extra riders or coverage where needed to cover any gaps.
Another of the most well-known types of small business insurance is liability coverage. A basic liability policy protects you if someone is injured on your property. Most policies cover medical bills and legal costs.
Crucially, liability insurance does not cover employees. To protect them, business owners must invest in Workers Compensation coverage.
Cyber insurance is one of the most often overlooked but vital business insurance options. It protects businesses in the event of:
- Data breaches
- Copyright or trademark infringement
- Loss or destruction of data due to viruses, worms, network security attacks, hacking and similar attacks
- Cyber extortion
If you own a business or are planning to start a business, don’t leave your company at risk. Make sure you include cyber insurance in your total business insurance package.
Unemployment and Disability Insurances
Depending on the size, type, and location of your business you will most likely find that you are required by law to purchase both unemployment and disability insurance coverage. Check the regulations before buying, as failure to hold the right coverage can be heavily penalized. When in doubt, ask an insurance agent for assistance calculating how much coverage you need.
Choosing the Right Types of Business Insurance for Your Needs
Insuring a business can be complex. There are many factors to consider including your company’s:
- Income level
It is easy to get distracted worrying about business insurance prices and lose sight of the coverage itself and any gaps it may contain. Fortunately, business owners don’t have to navigate the complicated waters of insurance policies alone.
The experts over at PolicySweet can help businesses of every size and type identify and purchase just the right coverage for their needs at affordable prices.
Now that you’re familiar with the types of business insurance you are most likely to need, it’s time to learn more. Explore our blog for the latest and hottest information you need to thrive in the modern business world.