Small Business Insurance Types

The same kinds of risks that face large businesses face small businesses, too. This is why you might be surprised to find out that the types of insurance large corporations rely on are the types of insurance your small company can rely on. The basic types of business liability insurance cover expenses for things you might consider intuitive.

General Liability Insurance

Your business's physical property needs to be protected against damages it might incur in a natural disaster, a fire, a flood and so forth. If your business is located on a main street on the ground floor and a driver were to lose control of his or her car and run into your storefront, you would turn to your property coverage to help in an instance like that. It may seem a little far fetched, but then again anything can happen. This is why your business property needs adequate insurance for just about any kind of potential risk it faces.

If your property were to suffer damages after a theft, such as several broken windows, you could still count on general liability coverage to help. There are more specific, additional forms of coverage to look into obtaining. You can consult with a professional business insurance broker to find out what specifics your general policy would cover. If necessary, you would want to obtain any additional types of coverage, such as coverage that pays your business enough to handle expenses associated with recovering your business property after a theft.

If an employee, such as a business accountant, or a customer were to be injured on your business property you also need basic coverage to pay for any medical bills that arise. If that injured party goes to sue your company, then that is where your general liability coverage will come into play. General liability insurance protects your business property and people involved in and around your business property. It also protects the business against crippling costs resulting from lawsuits regardless of whether or not those lawsuits stem from legitimate complaints.

Professional Liability Insurance

If your business is geared towards a profession like medicine, law or psychology, you would want to get professional liability insurance. This type of coverage insures your small business in case any claims arise from a client after you provided them with your professional service or advice. If they file a claim that alleges your service or advice was negligent or caused harm then your professional liability, or errors and omissions insurance, kicks in to help your business handle the legal expenses and costs involved.

You would not need to bother looking into obtaining professional liability insurance if you run a small, local cafe. Your end-product which is a quick meal does not involve you running the risk of providing your customer with inadequate professional advice. However, basic general liability insurance would help in the instance where a food supplier unknowingly delivered tainted food to your cafe which you in turn served to your customers. The cost of paying for any medical treatments or bills would be taken care of by your insurance policy.

While the basic types of coverage really do not vary much from business to business, the specifics that apply to your type of business versus someone else's business probably will. You need to speak to your insurer to see what specific coverage applies to your company based on local regulations and your business's level of risk. No matter what small business insurance types apply to your business, you want as much coverage as will protect it as adequately as possible.

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