Insurance helps businesses manage their risks

Starting a new business is an exciting opportunity, and business owners need to ensure that they are proactively protecting their new enterprise. One of the tools to help them safeguard their company, their employees, their vendors and their customers is insurance.

Small and medium-sized business owners face various risks, from injured employees and stolen merchandise to cyberattacks and slips, trips and falls, and major disasters like fires and floods. Insurance can help them recover and offset the cost of business-related losses.

Types of insurance for small businesses

While there are many types of insurance available, some of the most important types for small businesses include:

• Business Interruption
• Business Liability
• Cyber Insurance
• General Liability
• Health Insurance
• Officers & Directors Liability
• Product Liability
• Pollution Liability
• Umbrella or Excess Liability
• Vandalism & Malicious Mischief
• Workers’ Compensation

Each insurance policy will cover a specific aspect of the business and will also exclude (or not provide coverage for) certain situations. It is extremely important to thoroughly read your insurance policies, understand what they do and do not cover, and ask your agent (the person who sells insurance) or broker (owner of the insurance agency selling the insurance) questions if something is unclear.

The amount of coverage (or coverage limits) and types of insurance you need will depend on the type of business you operate. An agent or broker can help you identify the various risks for your business that will require coverage and the limits you should consider.

Related:

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