NYC Insurance Blog

What Types of Insurance Should Small Business Owners Consider?

Starting a new business is a great achievement. However, choosing the right small business insurance policies is important to protect your business from potential costs of damages, lawsuits, and claims. You may have to pay out of pocket for claims without the right type of small business insurance and amounts. Here are some primary types of insurance that small businesses need:

General Liability Insurance

General liability insurance protects your business from bodily injury and property damage claims. As a business owner, you are legally liable if a person is injured or their property gets damaged in your business or store. However, in case of property damage or bodily injury at your business premises, general liability insurance helps pay for the medical bills and lost wages. 

Business Interruption Insurance

Also known as business income insurance, business interruption insurance helps small business owners recover lost income and pay business operating expenses, for example, mortgage, rent, loans, and taxes. Business interruption insurance comes in handy when your business is forced to shut down due to unforeseen perils like theft, flood, or fire. Knwoing you are covered the way you should be, makes owning a business easier - give us a call to help with your insurance needs.

Workers' Compensation Insurance

You should consider purchasing workers' comp if you have more than one employee. The policy helps cover medical costs and lost wages if an employee is injured or ill at work. Workers' comp and disability insurance are usually required by law in most states. 

Professional Liability Insurance

Also known as Errors & Omissions Insurance (E&O), professional liability insurance is crucial if you offer professional services. E&O covers claims resulting from mistakes like negligence, misrepresentation, and giving false or inaccurate information. This type of coverage also covers attorney fees, judgments, and settlements. 

Auto Insurance

To run your business, you must invest in a commercial auto insurance if you own cars, trucks, and vans. An auto insurance policy helps cover bodily injury or property damage if you or one of your employees gets into an accident. Without commercial auto insurance for work vehicles, you could end up paying for damages out of pocket, which could be very expensive. Instead of taking a risk, just purchase auto insurance. 

Cyber Liability Insurance

Small business owners should protect their data and technology with cyber liability insurance (data breach insurance). The policy pays for data breach and cyberattack costs.

Commercial Property Insurance

Finally, every small business owner should protect their business and equipment from perils like fire, wind, and hail. Commercial property insurance protects your business's physical location and equipment, including the furniture and computers, whether owned or leased. Sometimes, the policy also covers theft and vandalism.

Always consult a professional to choose the coverages that best protect your business and fit your budget, Call us Today, to Get a Free Quote. 

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