Even if you don't have a lot of liability exposure, business insurance is a very useful asset to have. Business insurance helps you to maintain good business relationships with other companies or individuals. For example, if you decide to rent an office space for your business, landlords often require some type of certificate of insurance. This gives the landlord an assurance that your business insurance will help to cover the cost of damages if some type of accident occurs.
There are many different types of business insurance. Some of the most popular types of business insurance are the following:
1) Surety and Performance Bonds
2) Employee Fidelity Bonds
3) Business Interruption Insurance (this is not sold separately - it is included in a property insurance policy or in a package policy. This type of insurance covers the costs if your business is temporarily interrupted due to damage to the business premises, such as a fire or windstorm).
4) Malpractice Errors
5) Omissions Coverage
6) Liability Insurance covering Products and Activities
7) Liability Insurance for the Premises or Property of the Building
8) Commercial Multi-Peril Policies (this covers a variety of liability exposures)
9) Commercial Auto Insurance - even if you drive a private car for your small business activities, it is a good idea to get your vehicle insured as a commercial vehicle
10) Property Insurance - You should take a detailed inventory and account of all of your business property, which includes product and furniture! Make sure that all of your assets are covered!
In addition, business insurance is also a good idea for you to have for you're your company and employees. You will want to have insurance to cover any costs that might occur if an accident or problem happens to you or one of your employees at work. Some of the types of business insurance for your employees are unemployment insurance, worker's compensation insurance, and state disability insurance. For example, disability insurance can be a very important asset to a small business, especially if you get hurt and are not able to keep up with your small business needs during the healing process. If an accident is serious enough, the costs of hospital and doctor bills can swallow up all of the money which is needed to keep your small business alive and running. It is a good idea to be prepared with disability insurance, because it will replace your income during a time of emergency and disability.
These types of business insurance are the most common ones that are used for small businesses. If you need help to further determine what coverage you need, you might want to consider looking at the Small Business Liability Tool online at www.Insure.com. This website can help you to pinpoint your different liability exposures and will recommend different types of coverage to help insure those risks. However, it should always be remembered that a commercial lines insurance broker is also available to help with your specific needs!