Covering Your Bases: 7 Types of Insurance Every Small Business Owner Should Consider

Business owners are at risk of lawsuits and other issues in a variety of different ways and should ensure they are prepared for anything that could happen. Small business owners looking into potential insurance policies for their business should look for these 7 types of insurance to ensure they are fully covered for potential situations.

General Liability Insurance

General liability insurance is the most basic insurance policy for businesses and should cover the small business owner if they are sued for something by a vendor or customer. This type of insurance does cover quite a bit, but there are limits so it is not the only insurance the business owner should have. Business owners can visit Haberman Insurance to learn more about general liability insurance.

Commercial Vehicle Insurance

Any commercial vehicles owned by the small business need to be covered under a commercial vehicle insurance policy. If the small business owner drives their own vehicle, but it is used to advertise the company, it may be a good idea to look into whether it can be covered by personal vehicle insurance or commercial vehicle insurance to ensure it is covered in an accident.

Worker’s Compensation Insurance

Any small business that has at least one employee should look into worker’s compensation insurance. While it may not be required until they have a certain number of employees, it is a good idea to have on hand just in case anything happens. Worker’s compensation insurance covers medical treatments, disability, and other expenses if an employee is injured or killed at work.

Data Breach Insurance

In today’s world, data breaches are increasingly common. Depending on the information stored by the business, it could lead to thousands in damages, if not more, that must be paid to affected customers and employees. Data breach insurance helps cover small businesses if this happens and helps protect them from the expenses of handling a data breach.

Product Liability Insurance

If the small business sells any type of product, they need to have product liability insurance. This type of insurance is designed to protect the business if a customer is injured as a result of using the product. Even if the products don’t seem capable of seriously injuring someone, it’s a good idea to have this insurance just in case anything does happen.

Errors and Omissions Insurance

Mistakes happen, but in the business world, these mistakes could lead to a lawsuit. Errors and omissions insurance is designed to help cover a business that is facing a lawsuit for negligence or a failure to perform. This is not covered under general liability insurance and is different from the types of claims that might be covered under that type of insurance, so it is important to obtain.

Property Insurance

Even though a small business may not have a lot of assets yet, it’s crucial to purchase property insurance. This works similar to homeowner’s insurance as it protects the business owner from losses due to fire, theft, vandalism, and more. This type of insurance policy covers everything from the buildings owned by the business to office equipment, inventory, and any other property that the business might have.

If you’re planning on starting a small business, make sure you’re prepared for anything that could happen by looking into the different types of insurance available today. While you may not need all of these types of insurance right now, based on the type of business you’re starting, you may need them in the future.


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