Understanding the Different Types of Small Business Insurance

As a small business owner, you want to protect your commercial investment just like you protect your home or car. The main difference is your business is much more complex and requires more types of insurance to ensure that it is fully protected. It is important to talk to your agent to find out what types of insurance you have and what supplemental policies you may need to fill in any leftover gaps.

Following are a few different types of insurance that your small business may require.

1. Property Insurance

Property insurance protects property that is owned by your business. It will also protect another person’s property if it is damaged while it is on your business premises. Burglaries, theft, vandalism, and weather damage are all covered under this type of policy. Property insurance protects the structures of the business as well as your inventory. It will even cover what is referred to as employee dishonesty. In simple terms, it means damages caused by an employee stealing or taking part in other types of unethical behavior.

2. General and Professional Liability

General liability covers any injury a person receives while on your property. Professional liability will cover any damages to someone else’s property that is caused by a mistake on the part of one of your employees or a product defect. You are liable, even if the injury was unintentional. Personal or bodily injury is one of the most common forms of liability. Slip and falls, tripping, or objects falling from shelves can all result in a personal injury claim.

3. Workers’ Compensation, Health, and Life Policies

Workers’ compensation, health, and life insurance policies do not fall into any other insurance categories. While some people may try to recognize a workers’ compensation as a gap policy, it is in its own category.  Group health and life insurance policies are dealt with in the same manner. Employees have a choice as to whether they want to purchase them. However, the rates are lower for group insurance policies.

4. Supplemental or Gap Policies

Supplemental or gap insurance covers all of the other types of damages to which your business may be susceptible. This includes umbrella coverage, fleet insurance, business interruption, floods, earthquakes, and hurricane insurance. In today’s tech-savvy world, data breach or cyberattack insurance is also a must.

Though there are many different types of gap policies, the most common ones are those that cover floods, earthquakes, and hurricanes. Gap policies cover risk factors that do not affect everyone. Businesses that are located inland will rarely experience hurricanes. Businesses located along the coast, on the other hand, will readily purchase hurricane insurance to protect themselves against loss in the event of a storm that comes to shore.

These are a few different types of insurance coverage that you must consider in order to protect your small business. For assistance with all your insurance needs and questions, contact the experts at Miller Carlisle Insurance Services in Carlisle, PA. We look forward to helping you with all your coverage needs.