What type of coverage do small businesses need?

Small business insurance needs

Like larger businesses, small businesses typically require both business property insurance and small business liability insurance. Small business property insurance covers physical property such as real estate, fixtures, office supplies, equipment, computers, and other machinery.

Liability insurance for small businesses protects businesses against a variety of risks, including injuries that occur on the business premises or are caused by the business’ product, and usually pays for medical and court expenses associated with the claim.

Additional liability insurance is available for businesses who sell items through the Internet or who have electronic records. This insurance covers the businesses for losses of electronic data, whether that is from theft or another cause.

For most small businesses, a Businessowners Policy tailored to the proper industry is the most cost effective way to purchase business insurance. Getting quotes on a package insurance policy like this allows businesses to compare the offerings of insurance companies.

Insurance coverage for small businesses differs for businesses in different industries, so it’s important to get small business insurance quotes from an agent or broker who understands the business and the industry. For example, a construction company will require specific insurance for movable construction equipment; an online business will need protection from malicious attacks and loss of customer data; and a food service business will need protection for food contamination.