There are over 32.5 million small businesses in the United States. And many of those have found success and been able to grow into larger enterprises.
To succeed in this competitive marketplace, you must have a business plan. In other words, you have to follow a road map to ensure that you can provide a valuable service or product to your target customer. And, in turn, be profitable.
One thing you will want to make sure you have on your road map is business insurance. The correct type of insurance could save you significant money should an accident occur.
Here is a brief overview of some of the different types of business insurance that you should know.
Types of Business Insurance
Every owner should be familiar with numerous types of business insurance when running a business. Here are a few to watch for:
General Liability Insurance
As a business owner, you are responsible for the well-being of your employees and customers. You should consider purchasing general liability insurance to protect your business from lawsuits.
This type of insurance covers third-party bodily injury and property damage, as well as advertising and personal injury claims. General liability insurance can help you cover the costs of legal fees, settlements, and court judgments.
Product Liability Insurance
Product liability insurance protects a business from lawsuits that could happen if a faulty product hurts someone or causes damage. It is essential for all companies that make, sell, or distribute goods to have this kind of insurance. It can help a business pay for legal fees, a settlement, or a court ruling against it.
Commercial Liability Insurance
This type of insurance protects your business from financial losses that could occur if you are found liable for damages or injuries caused to someone else. It can help cover the cost of things like medical bills, legal fees, and property damage.
If you do not have commercial liability insurance, you could be on the hook for these costs if something happens. For that reason, it is essential to ensure you are adequately insured.
Pollution Liability Insurance
This type of insurance can be vital for businesses in areas prone to environmental hazards, such as oil spills or chemical leaks. It can also be helpful for companies that generate a lot of waste or use harmful chemicals in their production process.
Pollution liability insurance can help cover the cost of cleaning up a spill or leak, as well as any damages resulting from the pollution. Law does not require this type of insurance, but it is something every business owner should consider.
Workers’ Compensation Insurance
This kind of insurance protects a business financially if an employee gets hurt or sick because of their job. Workers’ compensation insurance can help pay for medical bills, lost wages, and other costs when an employee gets hurt or sick.
Protect Your Business With Insurance
There are many types of business insurance out there, and it can be challenging to know which type you need. However, there are a few basic types of business insurance every business owner should know about.
These include general, product, and commercial liability insurance and worker’s compensation insurance. Each type of insurance protects your business differently, so it’s essential to have a general understanding of each.
If you’re unsure which type of insurance is right for your business, talk to an insurance agent or broker. They can help you get the coverage you need to protect your business.
Please read more of our business articles if you find this guide helpful.
