All businesses are exposed to risk factors that may lead to damage, loss, or liability claims. You need business insurance to secure your business against such losses, as paying for them from your pocket can damage your business.
This blog discusses the critical business insurance coverages you must have, whether having this insurance is necessary and the factors you must consider before deciding the coverage types you need for your business.
Business Insurance Needed for a Small Business
Small businesses need essential business insurance coverage: the Business Owner Policy (BOP). This policy bundles basic insurance coverages in a single policy and includes:
- Commercial Property Insurance
It secures your business property that may be owned or rented. It covers damages caused by named perils such as theft, vandalism, fire, smoke, explosion, and high winds.
- General Liability Insurance
It covers your business against claims of bodily harm or property damage caused by your products, services, or operations and their associated legal expenses.
- Business Income Insurance
It covers the loss in income that your business faces due to a temporary disruption in its operations caused by a covered peril.
If your business has employees, you need business insurance, as most states require. The coverages that you need are:
- Workers Compensation
It covers medical and other expenses for your employees injured or falling ill at work.
- Unemployment Insurance
It covers the financial expenses of the employees terminated from their jobs through no fault of theirs, for a limited period, while they look for a job.
- Disability Insurance
It covers employees who cannot work due to a disability caused by an injury or illness.
Is Business Insurance a Necessity?
If you ever wonder whether you need business insurance, the answer is a resounding yes. Accidents can happen at any time. Business insurance, besides protecting you from out-of-pocket expenses, is a necessity due to the following reasons:
- Builds your business’s credibility
- Helps retain and recruit quality workers
- It is a prerequisite for several business contracts
Factors That Determine Your Business Insurance Coverage
While it has been established that you need business insurance as a business owner, you may need clarification about the specific coverages you need for your business, given the wide range offered in business insurance. When you buy the insurance, the factors that must determine the coverages that you purchase include:
- Type of business
- Commercial property
- Assets and equipment
- Number of workers
- Intellectual property
Several businesses need specialized business insurance coverage unique to their business in addition to the standard coverage. Here are a few examples:
Real Estate Business
If you own a real estate business, you may need:
- Commercial auto insurance
- Employment practices liability insurance
- Employment benefits liability insurance
Retail business owners may benefit from the following coverages:
- Business income and dependent properties insurance
- Franchise upgrade insurance
This business is a specialty business that needs specialty insurance coverage such as:
- Business income extension for off-premises operations insurance
- Herbicide/pesticide insurance
Secure Your Business with J. Archer Insurance
Protect your company’s future with J. Archer Insurance Group. Our expert team offers tailor-made and cost-effective business insurance coverage designed to meet your unique needs. Safeguard against potential risks and ensure peace of mind. Contact us today for comprehensive protection for your business.