As a business owner, you understand that the unexpected is to be expected. Therefore, you search for different types of business insurance to provide you with proper protection and peace of mind.
Let us help you prepare for the unexpected by helping you understand these three types of business insurance.
1. General Liability Insurance
When considering the many different types of business insurance, General Liability Insurance should be at the top of your list. It is an essential part of any business owner’s policy (BOP).
This type of liability insurance policy will help protect your business from lawsuits. In addition, it will provide individuals outside of your company with damage compensation. The damaged items in question will be replaced or repaired under the policy.
This leaves you free to manage the many other aspects of your business outside the courtroom.
2. Commercial Property Insurance
Commercial property insurance is another core part of a business owner policy (BOP). This business insurance will pay you for damages to physical property.
For example, you’re covered if a company vehicle is involved in a minor fender bender. You might also be covered if water damage from a leaky roof ruined some office equipment. The cost to repair and replace that property gets reimbursed to your business bank.
You may also consider asking your small business insurance provider for added coverage. Adding specialized coverage can help your business operate within a higher-risk industry.
Don’t let the idea of higher risk scare you, either. Higher risk does not always translate to higher costs.
3. Data Liability Insurance
More and more businesses store private data within both dedicated and cloud-based servers. Data Liability Insurance is designed to protect you if this data becomes compromised.
If you don’t think your business needs data liability insurance, consider this annual report from IBM for 2021. Unfortunately, with a year-on-year increase of 10% for the total cost of a business data breach, it’s not an inexpensive fix.
Data Liability Insurance is usually an add-on for your liability insurance policy. It will help cover your operational expenses during a data breach. Other costs may include expensive customer-related damages.
Other costly expenses can include data recovery and the improvement of data security. Some policies may even cover the handling of insurance collections costs. Other costly needs for public relations involving your business reputation may exist, too.
Consider More Different Types of Business Insurance
When considering different insurance policies, General Liability and property are a must. Data liability insurance will prove valuable for any business that stores data online.
There are still many other different types of insurance to consider. They may include business vehicle insurance or employee compensation insurance.
Navigating the many types of insurance available to your business can prove daunting. Discuss these different insurance options for your business with your provider.
That said, don’t be afraid to look at the many other helpful business startup articles from our blog – see you there.