When you’re just starting your small business, it’s important to understand what insurance coverage you need to keep your new business protected. There are several basic coverages that every small business should consider. Some of these coverages are even mandated by state law. To help you understand these coverages, we’ve put together a list of what basic coverages you should consider when you own a small business and how those coverages work.
Workers’ compensation is often required by states. If you hire employees, it is essential coverage. Workers’ compensation is an insurance policy that covers the cost of any injuries your employees get on the job. For example, if an employee is at work and on a ladder and falls off, you will be liable for the damages they incur. That includes medical bills and lost income in some cases. These expenses are really high, so workers’ compensation doesn’t just protect your employees, it protects you.
Commercial general liability is one of the most standard small business insurance policies. General liability insurance covers your business against liability claims and lawsuits. It’s a broad policy that protects you against injury and property damage claims as a result of your business activities. For example, if a customer comes to your business and slips and falls on a wet floor, general liability will pay for their injuries. Without this coverage, if there is an incident, your business could be taken to court if something happens.
Property insurance covers the physical property of your business. Property coverage includes your building, inventory, and business assets like equipment or machinery. Property coverage protects against theft, damage, and other incidents that destroy your business property. For example, if there is a wind storm that breaks your windows and damages your cash registers, property insurance would provide the coverage for the damages.
An umbrella policy is a very broad policy that can help cover some damages above the general liability coverage. It is designed to protect against unusually high losses that may not be fully covered by the coverages. For example, if a storm damages your business’ property, you may also experience an interruption in the business losing thousands of dollars. Umbrella coverage will help keep you protected in these scenarios.
Business Owner’s Policy
A very popular insurance cover is a business owner’s policy. Business owner’s policy insurance is an insurance designed specifically for small businesses. It combines a couple of different coverages into a single policy. Business owner’s policy can include:
- General liability
- Business interruption
- Property damage
These policies do not include workers’ compensation, so that will have to be purchased separately.
These basic coverages will help protect your small business against a variety of financial perils. At Panorama, we specialize in commercial insurance. Our agents work with a variety of carriers to help small businesses find the most coverage at an affordable price. To learn more, give us a call today!