Running a small business is a time-consuming and often overwhelming task. Along with wearing multiple hats, finding the right business insurance coverage is a must. Unfortunately, this is often something that is overlooked.

Business owners cannot afford to be caught without the right protection. While these policies can be purchased now at habermaninsurance.com, the types a business owner should think about buying are found below.

1. Property Insurance

Having commercial property insurance is essential, regardless of if a person owns the building where the business is located or not. If the business owner owns the building, they need to ensure the replacement cost if something happens. However, even if they don’t own the building, it will be necessary to ensure everything inside the building. This is also called “Business Personal Property Insurance.”

2. General Liability Insurance

This coverage offers protection if a business’s employees, products, or services are considered negligent and cause property damage or bodily injuries. The coverage provides protection against claims that may occur while someone is on the property. For example, if someone owns a business, general liability coverage would provide protection if a customer happened to slip and fall and sprain their ankle. It will also cover situations where someone got food poisoning from the food they consumed.

3. Loss of Business Income Coverage

This coverage takes care of the net profit or the “Actual Loss Sustained,” if a business has to close its doors for a certain period of time. For example, if the business’s physical location suffers a fire that causes it to close down for several months, the policy will cover the net profit that the business would have made during the time it is closed. The insurance provides peace of mind that the necessary repairs and changes can be made and that the business will not have to shut its doors for good.

4. Workers’ Compensation

Coverage In most areas, workers’ compensation coverage is required by law. Workers’ compensation insurance provides medical and wage replacement benefits for employees who are injured in the course of the work they do. It will also eliminate the right an employee has to sue their employer for negligence. When an employee accepts these benefits, they are giving up this right, which means the business is protected from any additional legal action as a result of the employee’s injury.

5. Cyber Liability Insurance

If a data breach occurs in a small business, the results can be devastating. If the business stores any type of private information about clients or employees, it is their responsibility to protect the information. Also, if a data breach takes place, the business is obligated to notify all employees and customers. This is both overwhelming and expensive. With cyber liability insurance, all the costs of this are covered.

It is also important to know if the limits in the existing Business Owner Policy a person has will be enough to cover a data breach loss if it occurs. In the past, the average cost of a cyber attack to a small or medium-sized business was around $200K.

Having the insurance listed above is the best way to ensure that a business owner is protected if some adverse situation occurs. Being informed and knowing the policies needed is key to the ongoing success of any business.

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