Protecting your small business with the correct kind of business insurance is the most important investment you can make. The types of business insurance you need depends on what type of business you have, where your business is located, how many employees you employ, and a few other factors. Here are 6 types of business insurance small businesses should consider.
General Liability Insurance. Every business needs to have general liability insurance. This type of business insurance provides coverage if you, your employees, or your products or services cause or are alleged to have caused bodily injury or property damage to a third party. It’s important to note that even small businesses based out of home need this type of insurance.
Professional Liability Insurance. Professional liability insurance covers a business against negligence claims due to harm that results from mistakes or failure to perform. It is also sometimes known as errors and omissions or E&O insurance. Since each industry has its own set of potential concerns, small businesses will have to work with their insurance company to have a customized policy written to suit their needs.
Home-based Business Insurance. This type of insurance is important for all small businesses that are run out of a home. Since homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does, ask your insurance agent about additional insurance to cover your business equipment and any inventory that you keep at home.
Worker’s Compensation. In Massachusetts, it is mandatory that all businesses have Worker’s Compensation insurance. Members of a limited liability company (LLC), partners of a limited liability partnership (LLP), or sole proprietors of an unincorporated business aren’t required to carry workers' compensation insurance for themselves. Worker’s compensation provides insurance to employees who are injured on the job. In exchange for benefits such as wage replacement and medical benefits to those who are injured while working, the employee gives up his right to sue his employer for the incident.
Property Insurance. If you own or lease a space for your business, you will need property insurance. Property insurance policies usually cover equipment, signage, inventory, and furniture in the event of a fire, storm, or theft. Floods and earthquakes are generally not covered under standard property insurance policies. If your area is prone to these issues, check with your insurance company about ways to include these in your coverage.
Business Interruption Insurance. If a disaster or catastrophic event (like a pandemic) occurs, a business’s operations could slow down or stop. This disruption could cause the business to suffer from lost income due to the staff’s inability to work in the office, manufacture products, or make sales calls. Business interruption insurance is especially important for companies that require a physical location to do business, such as retail stores or manufacturing facilities. Business interruption insurance compensates a business for its lost income during these events.
At Zammito Insurance we have the business insurance coverage that fits your needs. Please contact us at (781) 762-6732 to find out how we can help.