Having adequate business insurance is an essential component of running a business. It serves as a safety net to protect you in the event of potential risks and financial losses that a company may face. While this may seem like common knowledge, 40% of small business owners have no insurance at all.
Before you invest in business insurance, it’s important to consider the types of coverage needed for your industry. Whether you run a bar or sell real estate, you should have some type of business insurance. Common types of business insurance include general liability insurance, professional liability, property and casualty, and workers’ compensation.
With so many options for business insurance out there, it can be overwhelming. Let’s go over the common types of business insurance and which options may be right for you.
General Liability Insurance
First, injury and damage to those outside your business is something to consider. General liability insurance is designed to protect your business from third-party claims for:
- Bodily injury
- Property damage
- Personal and advertising injury
Essentially, general liability insurance covers an accident or injury that happens to someone who doesn’t work for you.
Professional Liability Insurance
Professional liability insurance covers claims related to errors or omissions in rendering professional services. This type of insurance is helpful in claims of negligence from customers. For example, it will cover claims involving damages caused by your business and things that should have been done.
Property and Casualty Insurance
Along with you, your staff and customers being protected, you’ll also need to consider physical items. Physical damage from fires, flooding, theft or accidents can be costly to your business. You may even have to shut down if the damage is bad enough.
Property and casualty insurance is designed to protect the physical assets of your business. This can include:
Physical damage from fires, flooding, theft or accidents can be costly to your business. You may even have to shut down if the damage is bad enough.
Workers’ Compensation Insurance
In most states, workers’ compensation insurance is a legal requirement. Not only is it required, it ensures the safety of your staff. This type of insurance covers your employees when they’re injured on the job. It will cover:
When selecting a business insurance policy, it’s important to consider the type of business you are in and the risks associated with it. For example, a restaurant might need property and casualty insurance to protect its physical assets, while a consulting firm may need professional liability insurance in the event of a lawsuit related to its services.
For over a decade, we’ve specialized in helping liquor stores, bars, restaurants and breweries with “anything you need” insurance. Colorado Licensed Beverage Association Members are eligible for up to a 10% discount on their premium.
No matter what type of industry you are in, business insurance is an important investment. It can help to protect your business from financial losses due to unexpected risks or liability claims.
Contact us today, and we can thoroughly assess your business and situation to develop creative, comprehensive, cost-effective solutions that fit your needs.