Business 101: Essential Coverage Every Small Business Owner Needs

Running a small business is an exciting venture, but it also comes with risks. One unexpected event can lead to financial strain or even jeopardize the future of your business. That’s why having the right insurance coverage is crucial. While every quote is tailored to your business’s specific needs, there are few essential types of business insurance that every small business owner should consider.

General Liability Insurance

This is the most fundamental coverage every business needs. General liability insurance protects against claims of bodily injury, property damage, and personal injury (such as slander or libel). Whether a customer slips in your store or you accidentally damage a client’s property, this insurance helps cover legal fees and settlements.

Professional Liability Insurance (Errors & Omissions Insurance)

If your business provides professional services, this coverage is essential. Professional liability insurance protects against claims of negligence, mistakes, or failure to deliver a promised service. This is especially important for consultants, lawyers, accountants, and healthcare providers.

Workers’ Compensation Insurance

Most states require businesses with employees to carry workers’ compensation insurance. This coverage helps pay for medical expenses, lost wages, and rehabilitation costs if an employee is injured on the job. It also protects business owners from potential lawsuits related to workplace injuries.

Commercial Property Insurance

If you own or lease physical space, commercial property insurance is a must. It covers damage to your building, equipment, inventory, and furniture due to fire, theft, vandalism, or natural disasters. Even home-based businesses should consider this coverage to protect business-related assets.

Commercial Auto Insurance

If your business uses vehicles for deliveries, client visits, or transporting equipment, commercial auto insurance is necessary. It covers damages resulting from accidents, theft, or vandalism involving business-owned vehicles.

Business Owner’s Policy (BOP)

A Business Owner’s Policy (BOP) combines several types of essential coverage into one comprehensive package at a lower cost. This is a great option for small businesses looking to simplify their coverage.

Investing in the right insurance coverage can mean the difference between a minor setback and a business-ending crisis. While every business has unique needs, these essential insurance policies provide a solid foundation for financial protection and peace of mind. Schedule a consultation with one of our agents at Edwards Insurance to customize a plan that fits your business’s specific risks and requirements. We’re always here to help!