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What Types of Business Insurance Do You Need


Most of the time, the financial discussion on this blog is personal, but it’s important to cover business topics for those who work at home or run their own entity. You might think it a wise move to avoid purchasing proper coverage for your business; after all, you’re trying to remove debt not accrue it. It isn’t wise. Period. You need business coverage, even if you work from home. Here are six insurance classifications to help you determine which ones you need.

1. Professional Liability

Does your work have the potential to harm others? For example, if you’re an accountant and you make a mistake that costs a client money, you could be financially responsible. Professional liability insurance protects you against claims of negligence and failure to perform your contracted duties, and this is crucial for those who work in businesses where attention to detail is crucial.

2. Property Protection

Even if you work from home, you’ll want property insurance to protect your home office space. You have expensive equipment, including the very device on which you are reading this article, and you cannot afford to lose it in theft, fire or other unforeseeable circumstance. Keep in mind earthquakes and floods aren’t generally included in this coverage, so get a special rider if that’s a concern.

3. Workers’ Comp Coverage

Your business insurance must also include workers’ compensation coverage if you meet your state’s requirements. You may be required to carry workers’ comp in some states even if you only have one employee. Other states, raise the maximum number of employees for the requirement and some do not require it at all. Check your state’s insurance department website to see where you fit in.

4. Product Liability

If you’re a product manufacturer, don’t lose everything over an injury lawsuit. If your product fails in such a way that the law determines you’re responsible, you could face some serious financial and legal consequences. Talk with an insurance agent about product liability coverage to see if it’s in your best interest. If you make something, it just might be and you don’t want to be caught without it.

5. Car, Truck, or Fleet Insurance

Even if you drive your personal car for business, make certain it’s insured to the nines. All company vehicles should carry business automobile insurance coverage, and if you have a fleet, don’t let any vehicle’s coverage lapse. You need to protect your business against third-party injury at the very least, but you should also take into account delivery insurance if you run a delivery business.

6. Business Interruption Protection

What would you do if you had to shut your business’ doors temporarily? Would your business be able to weather the storm? If you own a one-person shop or a small business, you probably cannot afford the loss, so insure you and your business against unexpected closures. Business interruption insurance helps mitigate losses during times you cannot operate, no matter the reason.

These are just six of the insurance options for businesses one-person, small, and large. Make certain you protect your investment – you business – by insuring it properly against any and all scenarios. Failing to carry the proper coverage could result in significant professional and personal losses, because if it’s just you, someone may go after your personal finances, as well.

So, what do you think ?