Small Business Commercial Insurance Overview: Understanding Basic Business Insurance Needs

It is a fact that all types of companies require, at a minimum, basic liability insurance. It is always wise to protect your business as much as possible. All industries are vulnerable to lawsuits for one reason or another these days. Even if you do most of your work from home, there are still some risks to be aware of, such as copyright infringement. Fortunately, there are custom small business commercial insurance policies available, so you can search for quotes tailored to your type of business and business size.

You should take the time to educate yourself on the four main types of general liability coverage, business property, business auto, and workers’ compensation. If you don’t deliver or use your car for anything related to your business, you probably don’t need that coverage on your policy. If you don’t have employees, you won’t need workers’ compensation.

Even if you have a few employees, you may or may not have to have workers’ compensation, depending on the laws in your state and the amount of risk involved with the employees. There is professional liability insurance for people like lawyers, accountants, consultants, real estate agents, etc. General responsibility and professional responsibility are not the same.

There are some risks that are excluded from commercial insurance for small businesses, although they can involve large losses. For example, floods and tornadoes require “specialized policies.” This is because insurance companies do not like having to pay such a large amount of money to all damaged businesses within a small geographic area.

Small Business Commercial Insurance Coverage

Here are some things that small business commercial insurance will generally protect your business from:

• If someone is injured in any way while on physical property associated with your business

• If a customer has any property damaged by you or your employees

• If your products cause damage to someone or their property

• If you use a customer’s photo in your advertising and they try to sue you for copyright

• If your business appears in a lawsuit for medical expenses and property damage

What about your OWN injuries? What would your business do if something happened to you? These are also things to consider when adding specialty coverage to your policy.

Just use the internet to find the right small business business insurance for you, starting with Hiscox Business Insurance. Review your insurance every year to make sure it meets your needs.