Running a business entails many financial risks, with small companies often lacking enough savings to cover a multi-million dollar lawsuit or rebuild after a natural disaster. Insurance provides a protective umbrella against such losses. Business coverage protects against accidents and professional mistakes.
1. General Liability
General liability coverage provides your small business with protection from claims alleging bodily injury or property damage to third parties caused by their operations. It’s one of the most popular forms of business insurance; some providers even offer package policies with both liability and property coverages to save costs.
Errors and Omissions (E&O) coverage could also prove invaluable, covering legal defence costs and settlement fees associated with work-related errors and oversights. Some clients and agencies require this coverage before agreeing to work with you; you can purchase this through either a business owner’s policy (BOP) or add it as an add-on to your general liability policy.
2. Business Property
Businesses require property coverage for items like business equipment, inventory and accounts receivable. Furthermore, this coverage protects against things like fire or flood that damage a business building and its contents; often this can be found as part of a commercial property insurance policy or business owners policy that offers reduced rates to low-risk companies.
As part of its overall small business insurance strategy, additional types of policies include general liability (CGL) to protect third-party claims of bodily injury, property damage and advertising injuries; workers’ compensation coverage in most states; and professional liability (also referred to as errors and omissions insurance).
3. Business Interruption
Business Interruption Insurance provides small businesses with financial relief in the event of an unforeseen disaster, covering expenses such as rent, payroll, utilities and any additional costs such as temporary locations or relocation costs.
Certain policies also offer contingent business interruption coverage to cover losses caused by disruptions in the operations of suppliers, customers or key business partners on which your company depends. Furthermore, civil authority coverage provides protection from losses related to government-mandated closures.
4. Business Auto
Businesses that invest in business auto insurance receive financial protection should their vehicles be damaged in an accident, while also covering liability costs resulting from bodily injuries to third parties caused by them.
Business owners can protect themselves when employees use personal vehicles on company business or rent vehicles for business reasons by purchasing non-owned and hired automobile coverage. It is wise to review policies every year in order to make sure the proper amount of coverage exists. NEXT Insurance offers small businesses an easy and cost-effective shopping experience with tailor-made policies designed specifically to their needs.
5. Business Umbrella
Small business umbrella insurance is a supplemental policy designed to increase the limits of existing liability coverages, serving as an extra safeguard to help safeguard against high-stakes risks such as significant claims or lawsuits. No matter how carefully you manage your operations, even the slightest setback could cause havoc with your company and threaten its survival. Therefore, having sufficient protection in place is of the utmost importance.
Businesses engaging in high-risk activities may need extra liability protection, while others require commercial umbrella insurance to satisfy a contract, client, or landlord requirement. An independent agent can assess your business needs and recommend the ideal policy to cover them.
6. Business Owner’s Policy (BOP)
A BOP provides general liability, commercial property and business income insurance in one comprehensive policy for small businesses that face multiple risks, saving time and money when compared with purchasing individual policies separately.
While a BOP may be the right solution for many small businesses, it’s important to carefully review each policy to ensure its limits are sufficient to protect your assets and mitigate third-party bodily injury or property damage risks. You should also assess their value against possible risk from third parties before selecting an appropriate premium and deductible amount that meets your business needs.
7. Business Owner’s Policy (BOP) Bundles
BOPs (Business Owner Policies) provide essential coverage to small businesses operating in low-risk industries with less than 100 employees, physical locations, and annual revenues of less than $1 million.
A Business Owner’s Policy, or BOP, typically combines general liability and commercial property coverage into one policy for a lower overall cost than buying each separately. You may be able to add special coverages like data breach protection or liquor liability insurance and save an average of $19 monthly in premium costs through NEXT customers—get started on a quote now and save!
8. Commercial Auto Insurance
Many small businesses need certain business insurance policies for legal or contractual obligations or just good business sense.
Commercial auto policies offer protection in case your work vehicle hits someone or is vandalised, usually at an affordable cost that can be combined with other policies to save money. An independent broker-agent can compare coverages, limits and exposure bases in order to find you an ideal policy tailored specifically to your company – get a quote online or speak to an agent today for more details!
9. Business Owner’s Policy (BOP) Bundles
BOPs combine general liability and commercial property coverage into one policy at an attractively reduced cost, often making it the superior option for small businesses that work directly with customers or possess valuable business property such as computers or office furniture.
Bundling policies is not only cost-cutting; it also streamlines your claims process with one insurer and point-of-contact for all coverage requirements. Many insurance providers also provide add-ons that allow you to customise the policy to best meet the needs and budget of your business.
