Insurance companies can make people avoid financial loses and unnecessary problems and they are crucial for small businesses who cannot afford to lose clients in case of emergencies or unplanned events that can interfere with their daily activities.
Some small businesses have specific insurance needs that come with their market niche, while others need more generic plans. Every country has specific laws when it comes to insurance for small businesses but there are some common insurance plans provided by insurance companies that can be very useful to small business owners from all over the world. The best way to choose insurance plans for your small business is to know the risks your small company has and to make sure you meet all the legal obligations from your country. To be sure your small business is protected and can recover in case of unexpected events, take a look at this list of 6 types of insurance for small business and decide what insurance policies you need in order to avoid unnecessary risks and problems that can be easily avoided by paying a monthly or annual fee to an insurance company:
General Liability Insurance
A general liability insurance is something that all small businesses should have especially if they are B2C. This insurance policy usually provides defense for both the business and its employees in case a product or service provided by the company caused bodily injury or property damage.
If a small business has vehicles used for work interests, an auto insurance is mandatory. In this case the insurance can cover vehicles that transport employees, equipment and products. In case of collisions and damages your products will be protected.
If the small business is located in a building owned by the business administrator, a property insurance will provide protection in case of natural disasters, vandalism, fire or theft. The company’s equipment and inventory can also be insured.
Cyber threats are common nowadays so in order to avoid being the victim of hackers especially if you own an online business, the best way to stay safe is to have a cyber insurance. In cased of downtime, you can be paid for the money you lost, your clients will be safer when they purchase from you since they will be protected against identity theft. This insurance is also great for those who store sensitive data on their work computers.
Professional Liability Insurance
Small businesses that provide services to their clients can consider a professional liability insurance. This type of insurance protects a small business against errors and omissions in the services provided to customers. This type of insurance vary from industry to industry and it is best to check your industry’s requirements.
Product Liability Insurance
As the professional liability insurance, this type of insurance protects the small business against financial loss that can be caused by defect products or products that cause injury to clients.
These two types of insurance are add-ons to the general liability insurance and offer additional protection to small businesses.