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Small Business Insurance Coverage

By March 1, 2021April 20th, 2021Personal Insurance
Las Coberturas para los Seguros de Pequeñas Empresas

Asian Small Business Owner

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Starting a new small business is both exciting and time-consuming. Maybe you’re just getting started or perhaps your business has grown faster than you could have ever imagined. You may be realizing that even with a small business you have a lot at stake that you need to protect.

The reality is that a new business is exposed to risk from ​day one​. This makes it essential to have the right insurance coverage, because one lawsuit or catastrophic event can have disastrous consequences for a small business.

There are several types of insurance that every small business should have in place as soon as possible.

  1. Professional Liability Insurance – What if mistakes occur? Professional Liability Insurance, also known as Errors & Omissions Insurance (E&O) protects your business against negligence claims due to harm that results from mistakes or failure to perform. Every business has its own unique set of concerns, so you will need a customized policy for professional liability insurance.
  2. Property Insurance – Do you own or lease space? Property Insurance will cover equipment, signage, inventory and furniture in the event of fire, storm or theft.Do you operate your business from home? Your homeowner’s policy does not cover a home-based business as it would be covered under commercial insurance. For example, your inventory and equipment would not be covered.Do you live in an area prone to large scale weather events like earthquakes and floods? These types of mass destruction events are not covered under property insurance, so if you are an area prone to these types of events, check with your agent to add a separate policy.
  3. Worker’s Compensation Insurance – Have you added your first employee? If yes, then workers’ compensation insurance should be added to your business insurance. Workers’ compensation insurance covers medical treatment, disability and death benefits in the event an employee is injured or dies as a result of his or her work with your business. Even if the work seems low risk, you can face claims like slip-and-fall or medical conditions such as carpal tunnel syndrome.
  4. Product Liability Insurance – Does your business make products for sale on the general market? Although you may take every step possible to ensure your products are safe, you may still find yourself named in a lawsuit due to damages caused by one of your products. Product liability can be customized to provide coverage for your specific products.
  5. Business Auto Insurance – Have you added any company vehicles? If yes the vehicles should be fully insured to protect your business against liability if an accident should occur. At a minimum, businesses should carry bodily injury and property damage to ensure against third-party injury and any property damage caused by the business’ vehicle.   You should also have collision coverage to cover any damage to your company vehicle caused by an accident.   You should also carry comprehensive coverage to cover loss of a company vehicle due to fire or theft.  Also, keep in mind that if you use a personal vehicle for business, you may not be covered under a personal insurance policy, especially if the vehicle is used for delivering goods or services for a fee.
  6. Business Interruption Insurance – What happens if a disaster or catastrophic event interrupts the operation of your business, such that your staff is unable to work at your place of business, you are unable to manufacture your products or your staff is unable to make sales calls? Business interruption insurance will compensate you for lost income during these events. Business interruption insurance is especially applicable if your business requires a physical location to stay in operation.
  7. Cyber Coverage – What happens if your website and/or electronic transactions are compromised?
    You can protect your growing small business from major financial loss due to lawsuit or catastrophic event by having the right insurance in place. You may be able to bundle the coverages you need under a Business Owner’s Policy (BOP). You may need customized coverages specific to your industry. At AIS Insurance Group, Inc., one of our experienced independent agents can help you identify the specific coverage needs for your business and assist you to protect your business as soon as possible.


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