Small business insurances help you control and manage the risks inherent to your business. As a business owner, you must have spent a lot of time, energy and resources to launch your venture and to keep it afloat. The last thing you need is to see it tumble down because of something that’s beyond your control.
We’ve compiled a list of 10 type of small business insurances you should consider investing in.
1. General Liability Insurance
General Liability Insurance protects you from claims made against you, for causing:
- property damage,
- bodily injury, and
- personal or advertising damages
It is a must-have insurance for any small business. If you are renting a space for carrying about your business, such as an office, shop, or warehouse, the General Liability Insurance protects you from claims against causing damage to these spaces as well. And if you sell a product, this insurance will be extended to the damages/bodily injury caused by your products
2. Property Insurance
Damage to all tangible business assets such as furniture, computers, tools, stock-in-trade, or any other business property, is covered under the Property Insurance. It provides basic protection for the assets that you own in the event of:
- natural calamities such as floods
- break-ins, or theft
You must consider this particular insurance for your small business especially if it involves production that depends heavily on the use of equipment and property.
3. Worker’s Compensation
Sometimes, accidents happen despite our efforts to avoid them. In case any of your employees are injured on the job, Worker’s Compensation will help you cover the expenses. It is also known as Employers’ Liability Insurance. As the name suggests, this policy will help you cover:
- medical expenses
- loss of wages due to absence from work
- compensation for death or permanent incapacity
In most countries, businesses are required by law to provide such compensation to their employees in the event of accidents. While you would hope to never have to use it, it will always be helpful to invest in a Worker’s Compensation policy.
4. Marine Cargo Insurance
If you import and export goods for your business, it is advisable to buy Marine Cargo Insurance. This protects your cargo from damage, destruction and theft during transit irrespective of its destination.
5. Professional Indemnity Insurance
If your business provides consultancy, advisory or any other professional service for a fee, your customers might sometimes express dissatisfaction with the final result. That’s where the Professional Liability Insurance is useful. It bears the financial aspect of:
- legal claims against your business for alleged negligent advice or service
- compensation, if customers incur a financial loss due to omission or error
- lack of skill
- breach of confidentiality
Such claims might lead to huge financial losses in the absence of an insurance for your small business covering professional liability.
6. Directors’ and Officers’ Liability Insurance
This insurance provides protection to the directors and officers in your company from third-party claims on decisions made by them in their official capacity. It covers the cost of any administrative, legal or civil proceedings against the company or its directors.
7. Cyber Liability & Data Protection Insurance
Nowadays, a lot of businesses rely heavily on digital platforms such as e-commerce websites, trade portals, and social media. As a result, you are responsible for the personal and corporate information that your customers share with you via these platforms. The Cyber Liability insurance policy covers the costs incurred from:
- data restoration
- cyber extortion
- public relations and legal representation
- third-party claims of investigation and compensation
If you run an e-commerce website, you will also be covered in the case of a cyber-attack that disables your business transactions.
8. Employee benefits
Nothing is better for your business than a motivated team. And one way to do so is to secure them and their dependents in case of death, disability or accident. Setting up an employee benefits scheme will help you to do so.
9. Key Man Insurance
Small businesses are often inspired and fueled by a key employee(s). Their death might cause the business to perish. In order to protect your business from such a sudden shutdown, a Key Man Insurance for the key executives of your company is useful. Your company is the beneficiary of the policy and will have the capital to remain afloat.
10. Commercial Auto Insurance
This protects your business against claims arising from accidents involving the company vehicle. It includes third-party liability and physical damage. Some policies also include first-party coverage like medical payments and collision.
Choosing the right small business insurances can be difficult and often confusing. At, Clema Risk Solutions, we can help you find the solutions that would best fit your business insurance requirements. Contact us if you have any questions regarding your business insurance.