Business insurance can be incredibly complex. Every company’s insurance needs will differ based on factors like industry, location, and size. However, regardless of these factors, there are a number of core coverages that every business should have. If you own a business, then this article is for you.
We’ve compiled a list of five coverages that businesses in today’s day and age should never go without. Some of these coverages, such as EPLI and property insurance, are becoming industry best practices as the number of claims and cases seem to grow each year. These coverages will help you secure your success and protect your business in today’s tumultuous times.
General Liability Insurance – In our litigious society, general liability insurance is a necessary coverage, regardless of business size or type. This policy will protect your business from lawsuits, claims, and settlements. From injuries to discrimination, your business can be sued for anything. This is one type of business insurance you simply cannot skip.
Commercial Property Insurance – Just like you wouldn’t leave your home or car without coverage, you shouldn’t leave your business’ physical assets unprotected. Equipment – from mobile phones and laptops to robots — can be extremely expensive to replace. Property insurance will protect your business from theft, damage, or destruction of your business property. Having to replace stolen, damaged, or destroyed physical property or inventory can be financially devastating for a business of any size. It is important to note, however, that a standard policy won’t cover floods. If your business is in a high-risk area for floods, this could be another coverage to consider adding.
Workers’ Compensation Insurance – Although specific laws vary by state, workers’ compensation insurance is typically required for any companies that have W-2 employees. If your business has any employees, you will want to invest in this coverage. Regardless of state law, it is a best practice to have workers’ compensation to protect both you and your employees if an injury or accident occurs on the job.
Employment Practices Liability Insurance (EPLI) – Just as with workers’ compensation, this coverage type is necessary for any business that has employees. With a new harassment case hitting the headlines every day, it has become a best practice to invest in EPLI. From the moment you start the hiring process, you open yourself up to discrimination and harassment allegations. EPLI will provide your business with insurance coverage against claims made by employees and prospective employees. These could include claims of wrongful termination, harassment, and other employment-related issues.
Keyman Insurance – While this coverage is technically considered life insurance, think of it as taking out a life insurance policy for your business. Often times businesses have one or two key employees who are vital to the company’s success. This could be the founder or even the top salesman. If a business loses a key person due to an unexpected death, it can create a shockwave of effects, including operational confusion and financial issues. Keyman insurance would provide a payout that could help keep the company afloat until a new direction is determined.
As your business grows and evolves over time, your insurance needs will inevitably change. However, these five core coverages will always serve you well and should never be left behind. If you have any questions about obtaining a customized insurance plan for your business, reach out to any of our agents for assistance.
Thank you for listing different insurance that a business may need. I have a friend that really wants to start a small business, but he doesn’t know what kind of insurance to get. I think it would be a great idea to make sure he gets general liability insurance. I agree it is one type of insurance he shouldn’t skip.
It’s interesting that businesses need insurance coverage so much. It makes sense that they would want to be covered! That way if anything were to come up, their insurance can help pay for it.
I do agree with you when you said that if the business has any employees, then it is best to invest in a worker’s compensation insurance to protect the owner and the employee from potential problems. I will note this down and suggest it to my brother since he plans on starting his own business in the near future. Since he is planning to hire at least a dozen employees for it, I think he needs to take time and invest in something that will protect all of them. Thanks!
My friend is going to start a coffee business soon, and I am thoroughly excited for him. It’d be great for him to know about the various kinds of insurance to help him decide which one he should go for. My preferred type of coverage would be the general liability insurance because it will protect the business from any circumstances such as injuries, lawsuits, and claims. Thanks for the information!
It sure is nice to know that a commercial property insurance can be used to protect one’s business assets. My father wants to start a business that requires the use of machines. I think this will be a great help to him which is why I’ll suggest that he gets in touch with an insurance provider that has this specific insurance type.
It sure was nice to know that regardless of what type of business the person is involved in as long as they have employees, they need to get a worker’s compensation insurance. I think it is very important for my brother to consider this one as he has three employees working for him. Since the nature of the business is not entirely risk-free, he needs to have this. Thanks!
My brother is planning to open a vape shop this year because he wanted to put his knowledge to good use. He knows a lot about vaping and its pieces of equipment, so he thought that he could earn money from it. Of course, he knows that he should get an insurance to help him secure his business. So thanks a lot for creating an article like this to help us understand the different types. I think he would really benefit from a general liability insurance. Like you said, it can protect him and his business from any lawsuits, claims, and settlements in the future. It also helped when you said that this type of insurance is a must and should not be skipped. I will definitely share this information with him. Thanks!
Thanks for explaining some coverage types you should have for a business. I’mg lad you mentioned you should have property insurance, in case something is stolen or damaged. This seems incredibly important, specially if a stolen item was incredibly important for a business’s workflow.
You did a great job of explaining different kinds of insurance for business needs. It really helped when you said that General Liability Insurance is the most important one, regardless of its business size or type. I know I can use this information as soon as we started to put up our business, cheers, and thanks a lot!
I really liked it when you pointed out that it is important to insure the business because the equipment, like the cellphones, laptops, and the like are extremely expensive to replace in case they break. I can agree with that. The phones that my family is using for the business are advanced and are expensive. I will request that we get a business insurance ASAP. We need that especially nowadays when floods and crazy rainfall happen so suddenly.
I like what you said about not leaving your business’ physical assets unprotected. My cousin is opening his own business and is looking into the various ways to legally protect it before he officially opens his doors. Thank you for the information about property insurance protecting your business from theft, damage, or destruction of your business property.
Thank you for pointing out that whether or not the law requires the business to have their employees insured, it is good practice to have them covered in case there are any for emergency purposes. I think this is important, especially in the business of my friend. Let’s just say they provide home services. I know that anything can happen while they are on the job, so they need to be covered.
My dad wanted to make sure that his business is covered in the future. It was explained here that having a general insurance liability will help protect the business from lawsuits. Furthermore, it’s advisable to consult insurance experts when considering purchasing insurance.
My husband and I are looking at starting a business. Neither of us had a clue on how many things we need to have in place that this article mentions prior to that happening. I will have to consult a professional to help us.
I wasn’t aware that there were so many different types of insurance that a business needs to get. I never would have thought of keyman insurance. It makes sense because it would be shocking if a critical person died, as you mentioned. My husband wants to start a business so I will let him know of all of these. I think the best thing for him to do would be to find an insurance agent.