10 Types of Insurance Coverage Every Small Business Should Have

As a small business owner you are vulnerable to losses if you lack proper insurance coverage. Consequently, there are 10 types of insurance coverage every small business should have.

1. General Liability
Every business, even home-based operations, requires general liability coverage.  If your product or service causes damage to a third party, general liability covers your defense costs and damages if awarded for bodily injury or property damage.

2. Property Insurance
If your business has personal property like inventory, tools, or computers then property insurance covers for theft, fire, and other losses. You should also consider adding to this policy, loss of earnings/business interruption coverage in case you are unable to operate during a loss.

3. Commercial Vehicle Insurance
A Houston commercial insurance policy will cover tools, inventory, etc., which are being transported as well as covering for damages and collisions. Note: personal auto insurance will not cover items being transported for business purposes.

4. Worker’s Compensation
If you have employees, worker’s compensation insurance is the law.  More importantly, proper coverage protects you and your personal assets if an employee is injured on the job.  This insurance covers medical costs and wage loss for the employee, and waives the employee’s right to sue your business if a loss occurs when they accept these benefits.   

5. Errors and Omissions
Also known as professional liability insurance, this type of policy covers your defense and any awarded damages in the event that you fail to render your services, or inadequately perform them.  General liability does not cover this type of loss, so if your business provides a service it is very important to consider this policy.

6. Data Breach Insurance
In today’s technologically advanced world, data breaches can and do occur.  If you store personal or non-public information about your clients or employees on your computer systems or paper filing systems and the information gets into the wrong hands, this coverage will protect your business from the losses that may follow.

7. Life Insurance
As a business owner with financial obligations, life insurance provides you with peace of mind knowing your family will be protected against financial burden in the event of your passing.

8. Home Owner’s/Renter’s Policy
This coverage protects against losses for physical property damage, contents and personal injury within the premises.

9. Directors and Officers Insurance
If a lawsuit is filed against a director or officer of your business, due directly to their actions related to your business, this coverage will protect against defense costs and damages.

10. Personal Umbrella Insurance
Additional coverage may be purchased in the event your liability insurances are exceeded during a loss.  Depending on the nature of your business, this can prove invaluable in a loss situation. Call ABM Insurance at 800-362-2809 to discuss your insurance requirements and get a free quote on a policy bundle that will protect you and your business.