What is Business Insurance?
Business insurance, commonly referred to as commercial insurance, is a type of insurance coverage that helps protect businesses from unexpected events such as property damage or loss, lawsuits, employee injuries, and more. Generally speaking, businesses of all sizes should consider adding a business insurance policy to help protect against unforeseen events and hazards when performing day-to-day operations.
What Does Business Insurance Cover?
There are many different types of business insurance and the specific coverage you need will depend on the nature of your business. Some of the most common types of business insurance include:
- General Liability: covers a business for claims of bodily injury or property damage that the business owner or its employees may have caused.
- Commercial Property: helps protect business property from damage or loss.
- Professional Liability: commonly referred to as E&O or errors and omissions coverage insurance, helps protect a small business if sued for professional errors or negligence.
- Business Owners’ Policy: sometimes referred to as BOP insurance, combines business property and liability insurance into one policy, protecting the small business owner from a variety of risks.
- Workers’ Compensation: also referred to as workers comp insurance, helps provide benefits to employees who are injured or become ill because of their job.
- Cyber Liability: helps protect a business from losses arising from data breaches and cyber-related attacks.
- Commercial Auto: commonly referred to as business auto insurance, helps provide physical damage and liability protection for vehicles that are used for business.
There are many types of insurance that should be considered for your business. It’s important to speak with a licensed insurance professional to help walk through the options tailored to your business needs.
Why Do You Need Business Insurance?
While insurance isn’t always a requirement for a business, you should speak to a licensed insurance professional to validate the right insurance strategy for your business. Each business is unique which makes the need for validating your insurance needs with a licensed insurance professional paramount. As an example, if a business has employees, they may be required to carry workers’ compensation insurance.
Even if insurance is not required, small business owners should seriously consider these coverages to help safeguard their business from the unexpected.
How Much Does Business Insurance Cost?
The cost of business insurance coverage will vary depending on a number of different factors, including which type of coverage a business is looking for, the size of the business, the type of property owned, the amount of coverage needed, and more. It is important to get quotes from several different insurers to get the best possible rate. According to The Hartford, some of the average monthly costs for key coverages small business owners should consider include [1]:
- Business Owner’s Policy (BOP) – Average Monthly Premium: $261
- General Liability Insurance – Average Monthly Premium: $88
- Workers’ Compensation Insurance – Average Monthly Premium: $70
How to Choose Business Insurance?
Business owners looking for insurance should work with an insurance professional who can help them perform a risk assessment and recommend the right coverage for the business.
Get a Business Insurance Quote
It’s important to work with an insurance expert to make sure you get the right insurance for your business. At BuyLiability.com, we’ve ranked the best business insurance providers to help you find the best coverage for your business.
Disclaimer
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