There are many different types of insurance coverage available for small businesses. What kinds of insurance does your company need? How do you know if you are covered?
The amount and types of coverage you need for your small business depends on a variety of factors, including your industry, the type of business you conduct, whether you have employees, and your location. At the same time, there are certain kinds of business insurance policies that almost all companies should carry, and it’s important to make sure you are covered in those areas.
We’ve created a checklist you can use to start making sure you have the protection you need. However, we always advise talking to an insurance professional to make sure your small business is covered in the case of unforeseen events.
Why Is Insurance Coverage Important for Small Businesses?
Every small business needs appropriate insurance coverage—otherwise, when incidents happen, business owners may have to pay out-of-pocket to cover damages and legal expenses against the company. In some cases, these costs could be financially devastating.
With business insurance in place, you can minimize the risk of financial loss and make sure your finances are protected.
Small Business Insurance Checklist
Use this simple small business checklist to ensure your company has the insurance coverage it needs to protect the financial stability of your business and family.
1. General Liability Insurance
General liability insurance coverage is essential for all types of small businesses. This policy covers claims of bodily injury or property damage caused by employee actions or negligence otherwise caused by your business.
2. Commercial Property Insurance
Commercial property insurance helps cover the cost of damage to or theft of your business property or equipment, including buildings, sheds, structures, signs, fences, furniture, equipment, machinery, and more. If the property or items you use to run your business are damaged or stolen, this insurance policy will protect you from paying for replacements out of pocket.
3. Business Interruption Insurance
Business interruption insurance covers you in the event your business was displaced or forced to close because of a fire, flood, or other covered incident outside of your control. This policy provides the funds needed to pay for reestablishing your business in another location and replaces lost income during temporary closures.
4. Errors & Omissions (E&O) Insurance
Errors and omissions (E&O) insurance, also known as professional liability insurance, is designed to protect those providing a professional service, especially in industries like law, medicine, and finance. This policy protects against claims of damages caused by an error, an omission, inadequate work, or negligent act.
5. Commercial Vehicle Insurance
Do you or your employees use a vehicle for business purposes—even a personal one? Then you need to invest in commercial vehicle insurance. If you or an employee injures someone else or damages someone’s property while driving, this policy will cover the resulting costs.
6. Employee Health Insurance
Health insurance is a great benefit for employees. An employee health insurance policy is important for small business owners who want to attract new talent and retain existing employees.
7. Workers Compensation Insurance
Most states require employers to have workers compensation insurance. This policy provides benefits for employees who suffer an injury or illness when performing their job duties. The amount of coverage required varies by state.
8. Umbrella Insurance
Umbrella insurance fills the gaps that other insurance policies leave behind. For example, if a liability claim against your business exceeds the limits of the policy, commercial umbrella coverage provides additional help so you are less likely to have to pay out of pocket.
Contact Melton McFadden for Business Insurance Coverage in Michigan
At Melton McFadden, our experienced insurance professionals can help you develop a business insurance plan that protects your business, employees, revenue, and peace of mind. We are ready to guide you through the process of identifying areas of risk, finding gaps in your current insurance plan, and creating a business insurance solution that works best for you and your company.
Whether you are looking to protect your inventory against loss or secure additional insurance for your business, we’re here for you every step of the way.Contact us today or request a free quote to get started.