If you operate a business, you likely already know there are many insurance products available. The number of options can prove to be confusing. However, it is important to remember that your business doesn’t necessarily need coverage from several different insurance policies, depending on the state you’re in, whereas some policies are law, such as how in Georgia you need to provide worker insurance for part-time staff.
Another example on how these rules fluctuate is, if you operate as a sole proprietorship or run a small business from home, you’re not going to require the same type of coverage as a mid-size organization with multiple employees. As a result, you have to pay particular attention to the type of insurance your company needs.
That’s where this article is here to help. Instead of dropping money on policies that aren’t necessary, you will have a greater understanding about which coverage is best. Here are four types of insurance your business may need.
Workers compensation insurance
If your business does have employees on its books, you will most likely require workers compensation insurance, as every state in America requires businesses to have some form of this coverage. However, the extent of your cover can be drastically different depending on where you’re based, with your requirements being dependent on the number of employees working for your business, as in Georgia you don’t need have this cover if you employ less than three workers. There are also plenty other rules specific in Georgia, so be sure to learn what’s required if you have a business there.
However, even if you fall under the mandatory total of employees, it still makes sense to acquire workers comp insurance as it supplies vital financial protection for not just your staff, but also you and your business. If an employee is a victim to a workplace injury, the insurance can cover emergency treatment, lost wages, medical bills, and even death benefits.
General liability insurance
For many small businesses, general liability insurance is a must. This policy protects a company from common claims that revolve around:
- Property damage
- Bodily injury
- Copyright infringement
- Advertising injury
- Reputational harm
Did you know that the average slip and fall settlement sits at around $30,000? For many small businesses, trying to cover this expense would lead to them having to shut up shop for good. Yet if you have general liability insurance in place, you won’t have to deal with this type of cost on your own.
Professional liability insurance
To be protected from client claims, you must be covered with professional liability insurance. This policy covers the likes of copyright infringement, negligence, and personal injury. It can include damages resulting from something you did, or something you should have done.
While many business types can benefit from this type of policy, professional liability insurance is particularly essential if your company supplies:
- Clients with contractual services
- Clients with professional advice
- A professional service
Commercial auto insurance
If you operate with business-owned vehicles, you need to have these covered with commercial auto insurance. This policy will cover you and your employees in the event of a vehicle-related incident. As a result, it can help cover expenses related to property damage, injuries, and more.
Commercial auto insurance is especially important for vehicle-based businesses like delivery companies and taxi firms. Yet it can also help you out if you use your car for work-related tasks and end up with unexpected expenses due to an accident.