A startling, yet well-known statistic states that nearly 50% of small businesses will fail within their first five years of operation. Typically, this is due to a lack of funds, mismanagement, poor marketing, and so on.
However, in some cases, businesses can be devastated by accidents, lawsuits, and similar tragedies. Fortunately, you can avoid these types of situations (or the fallout from them) by investing in different types of business insurance.
Business insurance is essential for protecting your company against the myriad of financial upsets it can experience from customers, employees, natural disasters, and more. Keep reading for everything you need to know about the most common types of small business insurance.
- Property Insurance
As a business owner with a commercial property, you need to make sure you’re financially covered in the case of fire, inclement weather, or theft. Most likely, the majority of your assets are contained within the walls of your commercial building. If something happened and you weren’t covered, it could destroy your business.
However, property insurance doesn’t necessarily cover bigger disasters such as earthquakes, tornados, floods, and hurricanes. Ask about these issues when signing with an insurance provider.
- General Liability Insurance
As a business owner with a commercial building, you’re also going to be vulnerable to lawsuits based on injuries occurring on your property. Therefore, general liability insurance is one oft he most important types of business insurance you can have for your company.
General liability also covers damages caused by you or your employees to other properties. This is common for companies that provide location-based services for homes and businesses, such as painting, contracting, etc.
- Worker’s Compensation Insurance
If you have employees, worker’s comp is one of the most essential types of business insurance. In the event that they are injured on the job, they are provided with necessary compensation until they can return to work. It can also be used if an employee becomes sick or ill due to their work environment.
In some cases, you can find a business insurance package that includes worker’s comp, property, and liability insurance.
- Commercial Auto Insurance
Business insurance requirements also demand commercial auto coverage if your company is in possession of any vehicles. Commercial vehicles are used every day to drive employees to service locations, deliver products, etc. If the driver of one of these vehicles were to get in an accident, your commercial auto insurance would cover the costs of damages, medical bills, etc.
- Business Interruption Insurance
Finally, we have all seen how things outside of our control can put a stop to the day to day operations. For example, the Coronavirus and it’s residual effects have caused massive pauses in businesses around the country, regardless of industry.
Therefore, one of the most necessary types of insurance is business interruption insurance. This policy helps you recoup your losses in the event that your business is temporarily shut down, your employees can’t work, or there is a breakdown in supply chains.
Want More Information on the Types of Business Insurance and Other Business Advice?
Running a small business can take all of one’s effort and attention. Once it grows big enough, you can start delegating time-consuming duties. However, you must always protect your assets with different types of business insurance.
Additionally, if you’re looking for more professional advice, we can help. Our blog is dedicated to helping small business owners like you find success in a competitive environment. Be sure to check out some of our other articles before you go.