Right small business insurance can save companies from lawsuits and other financial disasters. The types of business insurance needed vary by company type and industry, but most small businesses need general liability insurance. This policy covers a variety of calamities, such as customer injury, property damage, advertising injuries, copyright infringement, and reputational harm.
General Liability Insurance
Accidents, injuries, and lawsuits can be costly for small businesses. With adequate funding and savings, these scenarios can ensure the viability of a company and avoid bankruptcy or closure. General liability insurance Newark, DE, offers a financial lifeline to help a business recover from unforeseen challenges. Generally, this business insurance covers legal costs and compensation associated with customer injury, property damage, advertising injury, and personal and advertising liability. Additionally, some business owners add coverage for cyber liability and business interruption to their general policy. Business owners can purchase general liability policies as standalone or part of a business owner’s policy (BOP). Additional coverage options include:
- Commercial auto insurance.
- Employment practices liability insurance.
- Management liability insurance.
- A commercial umbrella policy.
Product Liability Insurance
A product liability policy protects a small business if an actual or alleged defect with its product causes injury or property damage to a third party. This type of insurance is typically included in a general commercial liability policy but can be purchased as a separate product. For example, say your company manufactures kids’ bikes and one of the wheels falls off while a child is riding it, resulting in a crash and a trip to the emergency room for stitches and a broken wrist. In this scenario, a lawsuit could be filed against your company for medical expenses and damages. This is why a business should have a firm product liability insurance policy. Businesses designing, manufacturing, and supplying physical products should consider purchasing a product liability policy. It can also benefit retail or e-commerce companies that sell goods online. These businesses may not physically make the products they sell, but if those products are sold, and someone claims they were defective or injured by them, this can be held against them.
Professional Liability Insurance
Building a small business requires a lot of hard work and dedication. But all it takes is one mistake to destroy everything you’ve built. That’s why professional liability insurance is essential for small businesses and professional individuals. Also known as errors and omissions (E&O) insurance, this type of business insurance covers the cost of lawsuits or settlements related to mistakes in professional services. Almost any business that provides advice or recommendations to clients can benefit from this type of insurance. Often, small businesses and professionals need multiple policies to cover all their bases. However, consolidating those policies can help them save money on premiums and make tracking all their coverage details easier. Plus, it can give them more confidence in their providers, knowing they are working with a trusted partner. Talk to a Now Insurance agent today to learn how to protect your business best.
Commercial Auto Insurance
A commercial auto insurance policy is a no-brainer for any company that relies on fleet vehicles to operate its business. From grabbing morning doughnuts for the team to driving clients to their office meetings, your business needs reliable and functioning vehicles to meet its mission. Commercial auto insurance can provide financial protection from damages incurred when your employees cause an accident that injures or kills someone and when your vehicles are damaged by vandalism, theft, or natural disasters. Another option, hired and non-owned auto coverage (or business automobile liability insurance), protects your business when your employees drive their cars or trucks for business-related reasons. You can also bundle your commercial auto policy with your general and professional liability policies for discounted rates. Commercial policies usually offer higher limits and broader coverage than personal auto insurance. Ask your insurance agent for details.