Insuring your business against common risks such as fire and theft is important regardless of its size. A larger business may require more types of insurance than a smaller one due to the high number of risks. Here are some important types of insurance covers that a small business may require.
- Commercial Auto Insurance
In most cases, small business owners will use their personal vehicles for business purposes. However, it is always advisable to discuss with your agent as most personal auto insurance policies don’t cover cars that are mainly used in business. You should protect cars that carry equipment, products, employees, or anything linked to your business.
Commercial auto insurance will cover your business vehicles from accidents. In case your employees use their cars for business purposes, a non-owned auto liability will be enough to cover their vehicles from damage and collisions. Always ensure all the vehicles involved in the business are insured.
- Life Insurance
Life insurance is a way of securing your financial future. In case you die, your beneficiaries will get a certain amount of dollars from the insurer. Although this insurance covers an individual against death, it offers peace of mind to the bereaved family. When you die, you know your family will not be burdened financially and there are high chances your business will continue to operate. Some small businesses fail when their owners die as some of the capital is used to cover burial and other related costs.
- Liability Insurance
Whether your business is home-based or located in other rented premises, it must have liability insurance. Your business can be sued. Some of your clients may say your defective products or services have harmed them. Other may link your business to hazardous environmental impacts. Liability insurance will cover all the damages and defense connected to your business up to the policy limits.
- Business Owner’s Policy (BOP)
Business owner’s policy (BOP) is a package that combines protection against important property and liability risks. BOPs include liability protection, business interruption insurance, vehicle insurance, property insurance, and crime insurance. Many small businesses go for this package, as it is cheaper than individual coverage’s. Sometimes, business owners change whatever is included in the package to match their specific needs.
- Property Insurance
You may set up your small business in your own building. Your business may also have personal property such as computers, raw materials, inventory, office equipment, and other tools. Property insurance will protect you in case of smoke damage, fire, vandalism, and theft among other types of common “perils.” Some types of this insurance also include coverage for water damage, debris removal after a fire, and equipment breakdown among other things. Another major benefit of this cover is that you may get operating funds when you are out of business due to catastrophic loss.
Terrorism insurance, umbrella policies, and workers compensation insurance are some of the other types of insurance important to a small business. At Zawada Insurance Agency, we can assist you to select the best insurance options from some of the top-rated Massachusetts insurance carriers. Since 1989, we have served our clients throughout Central Massachusetts and beyond.
For any insurance queries, contact us now.