Here’s when you should buy business insurance for your small business

February 26, 2019

As a business owner, you need to know which business insurance policies you need and when you should invest in them. Business insurance may take some time to research, but it isn’t something that you should put off. Here’s when you should buy business insurance, based on the type of insurance policies your business needs.

General Business Insurance Policies

At minimum, most businesses are going to need workers compensation insurance, general liability insurance, and commercial property insurance.

These types of insurance form the foundation of a complete insurance package. Often, general liability and commercial property insurance can be purchased in a bundle known as a “business owners policy.”

  • Workers compensation insurance. Once you have employees, you need workers compensation insurance. Workers compensation insurance protects workers against the financial impact of job-related injuries and illnesses.
  • General liability insurance. This is the first type of insurance most businesses should have. It protects your business against liability claims: claims that your business may have caused financial damages or physical injury.
  • Commercial property insurance. If you own a property for your business, you will need commercial property insurance. This protects both against things that happen to your property and things that happen on your property.

Specialized Insurance Policies

There are types of insurance that go beyond general insurance packages, for more specialized risks. Not every business is going to need these policies. It depends on the type of business you own.

  • Cyber liability insurance. If your business relies upon data or a computer infrastructure, you should purchase cyber liability insurance.
  • Errors and omissions insurance. Errors and omissions insurance protects you against mistakes that you might make as a professional. It’s important if you are advising clients in a professional capacity.

Buying business insurance doesn’t have to be complicated. Working with the right company can help. Contact the insurance professionals at Allen Insurance and Financial to find out more about the business insurance policies your company needs to protect itself.