Did you know that 99.9% of all businesses in the U.S. are small firms? That equates to a staggering 33.2 million small businesses!
So if you’ve always pictured yourself running a company, opening a small firm is a great way to start.
However, to keep your firm open, you must protect it with the most crucial types of business insurance. These can help safeguard your assets from the most common causes of losses.
Below is an overview of coverages your business likely needs, so read on.
Workers’ Compensation
Workers’ compensation for private employees is mandatory in 49 U.S. states. Texas is the only exception; it usually doesn’t require worker’s comp in the private sector.
The number of employees often determines if a business must get worker’s comp. Most states typically require it when a firm hires its first employee.
Worker’s comp provides medical and wage benefits to workers injured while on the job. The coverage also applies to those who get ill due to a work-related cause.
Employers’ Liability Insurance
Employers’ liability insurance covers areas that worker’s compensation usually excludes. An example is a medical cost for a job-related injury not covered by worker’s comp. Another is the legal cost of fighting lawsuits filed by employees.
Commercial General Liability (CGL) Insurance
CGL insurance for business covers bodily injury, personal injury, and property damage. It kicks in when these losses result from the insured’s operations or products. It also provides coverage for injuries that occur on the policyholder’s premises.
Commercial Auto Insurance
Most U.S. states require all motorists to carry minimum auto insurance requirements. These include individuals who drive company-issued vehicles. So if you use a car for business operations, you need commercial auto insurance.
Please note that personal car insurance won’t cover claims for business vehicles. Fortunately, some insurers offer auto insurance coverage for both individuals and businesses. These include Axis, Nationwide, and Ovation Insurance, to name a few.
Business Property Insurance
Insuring a company adequately requires protecting its physical assets from unexpected events.
The building where a business operates is an example of a physical asset. Others include office equipment, machinery, inventory, furniture, and fixtures.
Unexpected events, in turn, include fires. These are prevalent; in 2021, 116,500 such events occurred in non-residential buildings. They also resulted in over $3.69 billion in losses.
Theft, vandalism, and windstorms are other events often covered by business property insurance.
Commercial Flood Insurance
One inch of floodwater can already cause $25,000 in property damage. That’s enough to put a massive dent in your business finances. So, imagine how much worse it can be if your building gets flooded with more than one inch of water.
While you can’t prevent flood-causing storms, you can lower your risk of losses due to flood damage. One way to do this is to purchase commercial flood insurance.
Flood insurance covers physical damage to buildings directly caused by flooding. Also included in the coverage are the buildings’ contents damaged or lost in the flood.
Get These Types of Business Insurance Today
As you can see, there are many types of business insurance, from worker’s comp to liability. There’s also commercial auto, property, and flood coverage.
All those policies can help safeguard you and your business from financial ruin. So, as early as now, shop around so you can get adequation protection for your firm.
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