Properly insuring your small business doesn’t have to be overwhelming. Instead, it should be a simple process that gives your business added peace of mind when it comes to running your business. The basic definition of insurance, the main types of coverage, and how to secure a policy for your business all remain important to fully comprehend as a business owner.
What Is Insurance?
Insurance is an agreement between your business and a third party, usually an insurance company, that provides funds in the event of a lawsuit or claim against your business. Insurance packages can be well over 100 pages, which deters many business owners from fully understanding their limits and coverage. However, at a minimum, the common policy declarations and declarations pages should be thoroughly understood. Insurance policies generally span a 12-month period.
What Are The Main Types Of Small Business Insurance?
Public Liability Insurance
Public liability insurance protects you and your business in case your clients or any other third party sustains an injury and/or causes property damage during the course of your work. For example, if you were installing something at your clients house and your ladder tipped over, falling on your client and injuring them, public liability insurance would cover you for any claims against you or your business.
Products Liability Insurance
Products liability insurance protects you and your business from any products sold by a third party. For example, if a customer pays you to install a new water heater, and it ends up rupturing causing damages due to a manufacturer defect, products liability insurance would cover you for any claims.
Professional Indemnity Insurance
Professional indemnity insurance covers individuals who give advice to a third party in exchange for a fee, if that advice is the cause of any damages resulting in a claim. This may includes claims of negligence. For example, if you are a personal trainer and you give a client a range of exercises they can do at home, and one of those exercises ends up causing them long-term damage, professional indemnity insurance would cover you for any claims.
Cyber And Privacy Liability Insurance
Cyber and privacy liability insurance protects your business from lawsuits resulting from data breaches or for any damages caused to your business as a result of a cyber crime. Although technology has been great for many businesses, confidential client information sent over email, text, or other electronic methods increases the risk of a hack. If your client’s information gets leaked from a lack of security on your end, you may be required to pay damages. Cyber and privacy liability insurance may also cover you for any ransoms paid, or any downtime your business may face due to cyber crime.
How Can I Get Insurance For My Small Business?
Securing the proper insurance for your small business doesn’t take long. Many business owners still believe that finding the right insurance takes days or even weeks of correspondence with an insurance broker. Technology has drastically sped up this process. One way to get insurance is to use our instant quote generator, where you can get an estimate on market-leading insurance in seconds! Simply enter your occupation and expected revenue to get started.
Summary
Understanding the different types of insurance your business may need is critical to properly protect your business from unforeseen lawsuits. Starting with our instant quote generator can give you insight into the next steps your business may need to take. Reach out to a team member today to learn more.
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