As a small business owner your time and wallet are likely stretched thin, especially right now, and you might be asking yourself if you really NEED insurance. Making sure that you’re covered allows you to take smart risks on your business, protects you from property and other damage and gives you a safety net in case of an accident involving a customer or employee. So what are the different types of business insurance that you need to be looking at?
GENERAL LIABILITY INSURANCE
As a small business owner, you may be legally responsible if another person gets hurt or incurs damage to their property while at your business or because of something you did. General Liability insurance provides insurance coverage for your business in the case of claims made by others including bodily injury, property damage, or personal injury.
ERRORS & OMISSIONS INSURANCE
Errors & Omissions (E&O) insurance is useful if you or your employees provide a service that a client could claim is inadequate or tied to negligence. For example, if you are a real estate agent, you may find yourself facing a lawsuit if a homeowner finds defects in their new property after closing. This homeowner may allege you did not disclose the defects and try to collect based on the diminished value of the home.
WORKERS COMPENSATION INSURANCE
Workers compensation insurance protects your employees and your business from work-related accidents, illnesses, and even death. Workplace injuries happen in even the safest of workspaces. Even if the employee has health insurance, you are responsible for medical costs for a job-related injury or. The worker is also to a percentage of their wages if they are unable to work due to their injury or illness. These costs are covered by workers compensation insurance.
COMMERCIAL AUTO INSURANCE
Commercial auto insurance covers vehicles used for business and the people who drive them. If you or a driver of your business vehicle causes an accident that injures another person or damages their property, they can file a claim on your policy and bring a lawsuit against you or the driver.