Insurance

Business Insurance

Types of insurance you’ll need for your small business

Very few things in life are riskier than starting your own business. With so much to think about, it can be reassuring to know that some aspects of your business are covered by insurance. Small business owners have to deal with many different insurance needs, ranging from health to property to liability.

If you’re thinking about starting a business, you’ll want to arrange the following types of insurance:

  • Property insurance. This is probably the most important type of insurance for protecting the financial wellbeing of your company. Property insurance should cover your assets, including money, inventory, equipment (including both office supplies and machinery) and even intangible property like the trademarks you own.
  • Liability insurance. This type of insurance is also known as commercial general liability (or CGL). Liability insurance protects you in the event that you are sued. It covers four different events that your business could be held responsible for: bodily harm (to individuals other than your own employees, who are covered by worker’s compensation), slander / libel, damage to someone else’s property and making misleading public statements or false advertising.
  • Auto insurance. If your company uses a company vehicle (and most businesses today do), you’ll need to have it insured. This will protect you in the event that your vehicle is damaged, stolen, or most importantly, involved in an accident in which your company is found to be at fault. If you use the same car for business and personal use, make sure that your insurance company knows this.
  • Worker’s compensation insurance. This insurance is mandated by state law. It protects your employees (and their dependents) by giving them financial and medical benefits in the event they are injured or killed on the job. It is not the same as health insurance.
  • Health insurance. Employers are generally not required by law to provide their employees with health insurance, but many choose to do so because it’s a benefit their employees want. It’s up to the business owner to decide whether to get group coverage or individual coverage.
  • Natural disaster insurance. This only applies if your business is located in an area that’s particularly susceptible to catastrophic weather events, such as hurricanes and floods.