Many insurance options may benefit small and new businesses. These policies can protect your company in the event of different risks or claims that may arise during normal business operations. While choosing the right insurance may seem intimidating, the first step is understanding the various options and considering which types of coverage may best suit your business.

1. General Liability Insurance

Sometimes called business liability insurance, general liability insurance is designed to protect you and your business from broad claims that involve bodily injuries and property damage. It may also cover damages to the premises rented to your business. However, this type of insurance doesn’t usually cover employee injuries, auto accidents, punitive damages, workmanship, or professional mistakes.

2. Business Income Coverage

This type of commercial property insurance covers the loss of income suffered by a business that experiences a slowdown or suspension of operations due to covered causes like fire, storm, or theft. Business income coverage may also apply to loss suffered during or immediately after the damaged property is repaired or replaced.

3. Workers’ Compensation

Worker’s compensation is a type of liability insurance required under state laws that covers medical costs and replaces wages when employees are injured on the job or suffer from illness due to their work. The policy can protect both business owners and their employees from financial disaster, as the average claim is over $40,000.

4. Professional Liability Insurance

This type of business insurance provides coverage to professionals and businesses to protect against claims of negligence from their clients or customers. Professional liability insurance typically covers negligence, copyright infringement, personal injury, and more. Often it applies to claims including damages caused by things a professional or business did or failed to do but should have done.

5. Commercial Property Insurance

Commercial property insurance covers the building where you run your business. It can also cover all of the gear, equipment, and inventory your company needs and stores on the premises. In the event of a fire, theft, or other covered causes, this type of insurance can cover repairs or replacement to help keep your operations up and running.

6. Employment Practices Liability

This coverage can cover claims of wrongful termination, harassment, discrimination, breach of contract, and other employment-related claims made by employees regarding their employer. Small and new businesses are often more vulnerable to employment claims because they usually lack a legal department or employee handbook detailing the policies and procedures guiding hiring, disciplining, or terminating employees.

7. Business Owner’s Policy (BOP)

This is the most popular type of insurance, as it combines general liability, commercial property, and business income coverage into one policy. Sometimes, it also includes crime insurance which can protect businesses in the event of loss from fraud, theft, and forgery. Other optional coverage can be added, such as coverage for accounts receivable, cyber liability, and rented vehicles.

The type of coverage and insurance your business needs can vary greatly depending upon a variety of factors. Ultimately, whether you run an auto repair shop, retail store, or an accounting firm, it will benefit you to find a businessowners policy tailored to suit your specific needs. Talk to your Westwood agent about finding the right coverage at the best price.