If you run a small business, you likely need to purchase a few types of small business insurance to protect your assets. These include professional liability insurance, Errors and omissions insurance, and commercial property insurance. In some cases, you may even need to have workers’ compensation insurance. These policies are required by state law or may be required by your business loan or lease.
General liability insurance
General liability insurance is a necessity for small businesses. It will cover your costs if you are sued for property damage or personal injuries. Without it, you can find yourself liable for the actions of your clients. It will also cover you against accidental copyright or trademark infringement. While it may seem like an expensive coverage, it is essential for the protection of your business.
There are many options for general liability insurance for small businesses. The Hartford is a top-rated insurer that offers comprehensive coverage. Their policies cover property damage, bodily injury, medical payments claims, and damage to rented property. They also offer specialty general liability insurance that covers higher-risk industries. Hartford also provides an online broker.
General liability insurance for small businesses can protect your assets in case of third-party claims. It covers bodily injury, property damage, advertising injury, and more. Many businesses face numerous risks on a daily basis. For example, a customer may fall on your floor and require medical treatment. Other risks include accounting errors or damage to property. Even unfounded claims can result in thousands of dollars in legal fees.
Professional liability insurance
Professional liability insurance is essential to protect your business from the consequences of negligence. It can save you from paying for expensive lawsuits. Besides covering defense costs, this type of insurance also covers judgments, settlements and lost earnings. Depending on your business needs, you can purchase different types of liability insurance.
There are many ways to buy liability insurance, including by applying for a business owner’s policy (BOP). This type of insurance can bundle multiple types of coverage, such as property and liability coverage. BOPs are offered by most insurance companies to small businesses. You can also purchase liability insurance on your own, but many small business owners opt to use agents or brokers. Keep in mind that agents and brokers receive commission from insurance companies, so your quote may include their fee.
A typical policy will cost around $1700 per year, but the price will vary. Some factors will affect your premium, including the industry you’re in, the number of employees you have and the type of services you offer. If your business is small, you can choose a lower premium by raising your deductible. However, the more extensive your coverage is, the more expensive it will be.
Errors and omissions insurance
Errors and omissions coverage costs can vary widely, depending on your business’s industry, size, location, and risk level. Obtaining a customized quote from multiple insurance providers is the best way to determine the best rate for your business. You can also check with professional associations to find more information about pricing.
E&O insurance may not be mandatory under federal law, but many clients, government contracts, and professions require it. Additionally, it makes your business look more professional and sets you apart from competitors without it. It can also give you the peace of mind that comes with knowing that your business is protected in case of an error or omission.
Errors and omissions coverage is a necessary part of a small business’s liability protection. It protects a business from lawsuits if a client claims that it has rendered inaccurate or incomplete advice. Errors and omissions policies cover legal fees, court costs, and settlements.
Commercial property insurance
Small business commercial property insurance is important to protect your building, contents, and equipment. It can cover damage caused by natural disasters, theft, and water damage. You may also need commercial property insurance if you rent space. While this type of insurance is not required for all businesses, it may be a good idea if you rent space in a different location or do not use your own property.
A small business commercial property insurance policy will include several additional types of coverage. Additional options include protection for debris removal, preservation of the building, damage caused by pollution, and loss of electronic data. In addition to commercial property insurance, you may also want to look into other policies, such as earthquake, equipment breakdown, fine arts, cyber liability, and flood.
Most insurance policies cover property against many different risks. Many policies, however, exclude certain perils, including acts of war and terrorism. Also, a standard policy will not cover the cost of termite treatment, employee dishonesty, or other costs related to the building. These extras may need to be covered through separate policies with the same insurer.