Many small business owners are unsure if they really need insurance. Insurance protects your small business in the 
case of a variety of losses. Only you can decide what kind of insurance your businesses needs. Ask yourself,
- "What do I need to protect buildings, equipment, liability from other people's claims?"
- "How much is it worth?"
When selecting insurance, be sure to:
- Select the type and amount to fit your unique situation.
- Shop around and pay a reasonable, competitive rate.
- Select enough coverage to insure assets adequately.
- Always read a policy and understand it before signing.
- Avoid duplicating coverage.
Types of Insurance for Your Business
| Business Owner's Policy |
A standard business owner's policy provides coverage for property (fire, wind, theft, etc.), liability (injury of someone in your business or by your product), business interruption, and, in some cases, workers' compensation. The components of each policy are different, so be sure that your policy contains all the components your business requires. |
| Property Insurance |
Property insurance provides coverage to your business for loss or damage (such as fire or vandalism) to your property. Most business owner's policies include property insurance. Business property coverage typically falls into two categories: building (covers damage to "real" property caused by fire, lightning, wind, vandalism, etc.) and personal property (property inside its building, such as files, office furniture, inventory, materials, etc.) |
| General Liability |
General liability insurance will cover your business in case of bodily injury to someone or damage to someone's property that occurs on your premises. For example, this type of insurance would cover you should a client trip over a loose phone cord in your conference room and break an arm. Similarly, if you were to accidentally knock over and break an expensive antique on a client's premises, your general liability policy would reimburse the client for the damaged property. |
| Professional Liability (Errors and Omissions) |
Professional liability insurance, also commonly referred to as errors and omissions coverage, protects you financially in the case of a claim against you for negligence, errors, omissions, or wrongful acts in the performance of your duties. It includes coverage for malpractice, errors, and omissions.
The professions for which it is recommended or required include, but are not limited to, computer technicians, systems analysts, accountants, hairdressers, lawyers, and consultants.
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| Umbrella Insurance |
These types of policies offer extra liability coverage that kicks in for losses when the limits of your primary liability policy are reached. Umbrella coverage often applies to either business liability or automobile liability insurance. |