The Essential Business Insurance Policies for Small Businesses

Owning and operating a small business can be exciting and lucrative. However, while watching your company grow and evolve may be rewarding, the path to business success can be full of pitfalls and hurdles. This unpredictable landscape, combined with the typically limited resources of small businesses, makes appropriate planning critical. Your small business should prioritize implementing and maintaining appropriate loss control measures, including a versatile and robust insurance portfolio.

What Is Small Business Insurance?

Small business insurance typically combines several types of coverage to form a package of policies that protect your company from potential financial losses. While some insurance companies may offer prearranged bundles of coverages that can simplify the process of compiling suitable policies, you may also need to build your own portfolio from scratch. This is where working with a qualified insurance professional, such as those at Hathaway Agency, Inc, can be critical.

Essential Types of Insurance for Small Businesses

Every business has unique circumstances that may impact their insurance needs. For example, those in high-risk industries, such as construction and agriculture, may require higher coverage limits to account for potentially catastrophic losses. Still, the importance of several common types of insurance may transcend industry lines or specific situations. When assembling your small business’s insurance portfolio, consider at least starting with the following core coverages:

• General liability insurance may assist with third-party losses for which your small business is at fault, such as bodily injuries, property damage, personal injuries and reputational harm.
• Professional liability insurance, also known as errors and omissions insurance, may insulate you from financial consequences if a client or customer accuses your business of providing subpar services or professional advice or breaching the terms of a contract.
• Commercial property insurance may help your small business recoup losses involving its physical assets, including its buildings, electronics, equipment, inventory and furniture.
• Business interruption insurance may limit financial losses arising from a disruption of your normal operations, including helping to cover rent, lost income, employee payroll and loan payments.
• Workers’ compensation insurance may be critical for legal compliance reasons and to assist your employees in accessing health care and recovering should they be injured on the job or develop a work-related illness.

Depending on the details of your small business, including its location, industry and specific operations, additional coverage may be advisable. For example, commercial auto and cyber liability coverage may be needed if you use motor vehicles or work with sensitive data.

We’re Here to Help

At Hathaway Agency, Inc, we pride ourselves on helping small businesses secure optimal coverage. Our independent agents have a vast network of carriers and will leave no stone unturned in finding you suitable small business insurance at ideal rates. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.