When purchasing small business insurance, determining coverage will depend on the type and size of your business. Common types of small business insurance include general liability insurance, commercial property insurance, and workers' compensation insurance. .
General liability insurance
General liability insurance covers your business against claims for bodily injury to others, property damage, and more. It also includes compensation for defamation such as libel, defamation, and copyright infringement.
General liability also includes legal costs such as hiring an attorney and obtaining judgments or settlements against the company.
commercial property insurance
Commercial property insurance covers your small business's physical property against problems such as fire and theft. This includes business items such as computers and workstations, desks and chairs, business records, business inventory and supplies. Offices and business buildings can also be covered.
Commercial real estate insurance is also known as business real estate insurance.
workers compensation insurance
Workers' compensation insurance pays employees if they become ill or injured as a result of their work. This includes medical care, physical therapy, and lost wage compensation. If an employee dies due to a work-related illness or injury, a death benefit will be paid to the employee's family.
Most states require workers' compensation insurance even if you have only one employee.
commercial auto insurance
Commercial auto insurance covers vehicles used for business purposes, such as cars, trucks, and vans.
Personal auto insurance typically does not cover the use of a vehicle for business purposes. If you don't have commercial auto insurance for your work vehicle, any claims may be denied and you may have to pay out of pocket in the event of an accident or damage, which can be costly. .
Errors and omissions insurance
Errors and Omissions Insurance (E&O) pays liability costs when a customer or client accuses you of making a mistake in your professional services.
E&O is also known as professional liability insurance.
inland marine insurance
Inland marine insurance covers business assets that are transported by land, such as equipment, materials, products, and tools. This coverage is different from marine insurance, which covers business assets while in transit by sea.
Cyber liability insurance
Cyber liability insurance can pay for recovery costs if your computer system or data is hacked. It also helps pay for expenses such as notifying customers affected by data breaches or credit monitoring.
Short-term liability insurance
Short-term liability insurance is designed for short-term projects such as an hour, day, week, or month. Covers accidental property damage and personal injury caused to others. It also covers legal costs, judgments, and settlements if you are sued as a result of the accident.
Short-term liability insurance is a good option if:
- Seasonal or limited-time business.
- A project where you are asked to advise a client.
- Projects that require a specific type of insurance amount.
Short-term liability insurance is also commonly known as:
- construction project insurance
- project insurance
- 1 day business insurance
- 1 day general liability insurance
- Dispatch business insurance
- temporary commercial insurance
- Temporary liability insurance
Medical malpractice insurance, also known as medical professional errors and omissions insurance, covers the cost of insurance claims that result in patient injury or death. It also covers issues such as medication errors, premature discharges, and unnecessary surgeries. Medical malpractice insurance pays for legal costs, judgments, and settlements if you are sued due to an issue covered by your insurance.
If your small business handles medical equipment, provides care to patients, or monitors patient care, you may want to consider a medical malpractice policy. Examples of occupations that may benefit from this coverage include:
- Associate nurse license holder
- nursing practitioner
- nursing student
- personal trainer
- physical therapist
- physician assistant
- yoga instructor