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What kind of business insurance do I need?

By March 29, 2022Insurance

What kind of business insurance do I need? 

Posted in Business 

The best insurance for business owners is quality coverage that caters to your company’s specific needs. From data breach insurance to commercial auto insurance to workers compensation insurance, there are many different types of coverage your business can utilize to protect your employees, customers and assets. 

Check out several types of business insurance you should consider and learn what coverage is best for small businesses. We’ll walk you through the most common coverage options as well as some additional insurance types that can save you time and money. 

6 types of business insurance 

The types of commercial insurance coverage you need for your business will vary depending on the industry demands and the size of your business. For example, a small flower shop will require different coverage than a large distribution center. 

Here are six common types of business insurance you should get familiar with before you talk to an independent agent: 

  1.  General liability insurance
    This coverage protects your business from financial loss in the case of property damage, libel, slander, bodily injury, medical expenses, defending lawsuits and settlement bonds or judgments. It’s not usually required by law, but any business can get general liability insurance. 
  2. Commercial property insurance
    For businesses with large sums of assets and property, commercial property insurance is highly recommended. This coverage will help cover costs if your property is damaged due to accidental fire, smoke, high winds, hail storms, vandalism or civil disobedience.
  3. Product liability insurance
    Companies that manufacture, distribute, retail or wholesale a product require product liability insurance. It protects your business from financial loss in the event of a defective product causing bodily harm or injury. 
  4. Professional liability insurance
    Businesses that offer services need professional liability insurance to cover loss after negligence, malpractice or errors that result in financial loss for the company. 
  5. Home-based business insurance
    Just like the name says, this coverage is for businesses that are ran out of the owner’s home. The coverage is technically added to a home insurance policy to protect a small portion of business equipment and liability coverage for third-party injuries. 
  6. Business owner’s policy (BOP)
    Typically used for small businesses or home-based businesses, BOPs are insurance bundles. You can work with a licensed insurance agent to create a commercial package featuring all your business property and liability coverages. Because they’re bundles, these packages can often save you money. 

 

The types of business insurance that are required vary by state. Whether you need help exploring types of business liability insurance or a basic business owners policy (BOP), talk to a Grange agent at Harris Insurance today to learn what commercial insurance is right for you. 

*Reprinted from Grange Insurance News 

 

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