In part 1 of this quick guide to the most common types of business insurance for
small businesses, we will explain in plain-English 4 of the most most common types
of small business insurances, and why you might need each type. Because of our small
business expertise and the great relationships we have with small business owners,
we know it’s common for the non-insurance professional to get confused with all
the “insuranceze” out there.
At BOLT Insurance Agency, we make sure you get the right coverage for your business
by asking you the important questions so that you can be at ease knowing you’re
covered properly. Our online quote comparison tool makes it easy for you to compare on your own
even with zero knowledge of insurance, or you can speak to one of our small business
experts and let us do the work for you.
The 8 Most Common Business Insurances:
- General Liability & Business Property
- Commercial Auto
- Employment Practices Liability
- Workers’ Compensation
- Flood Protection
In part 1, we will focus on the first 4 types:
1. General Liability & Business Property Insurance
- What is It: Allows a small business to purchase a combination of coverages
at a reasonable price
- What it Covers: Certain losses resulting from property damage, suspended
operations and liability resulting from bodily injury or property damage to others
- Why You Might Need It: Even if you did or didn’t do something to cause an
injury or cause property damage, liability insurance protects the assets of a business
when it’s sued
2. Commercial Auto Insurance
- What is It: If you rent, lease, own, or borrow vehicles that are used in
your business you need to have commercial auto coverage for them
- What it Covers: Certain legal liability resulting from bodily injury or property
damage caused by the vehicles used in your business
- Why You Might Need It: All states require by law to have automobile coverage,
except for New Hampshire or Wisconsin where it is not compulsory.
3. E&O Insurance
- What is It: Also known as Errors & Omissions Insurance
- What it Covers: Coverage for mistakes (errors, omissions, etc.) made by professionals
such as engineers, lawyers, and accountants or for service business mistakes by
the likes of real estate agents, or insurance agents.
- Why You Might Need It: If an error or mistake is made when you are providing
your service to another and the customer has a financial loss due to it, E&O insurance
will defend the claim and pay the loss
4. Employment Practices Liability Insurance
- What is It: Provides protection and coverage against employee lawsuits
- What it Covers: Covers the legal costs you would otherwise have to pay to
defend claims involving sexual harassment, wrongful termination and discrimination
including legal liability for such acts.
- Why You Might Need It: If a current, past, or even prospective employee believes
that they have been a victim of discrimination, sexual harassment, or a hostile
work environment, they have the right to sue the employer for damages. Employment
Practices Liability Insurance will defend the claim, pay legitimate claims if necessary,
and pay punitive damages if allowed to do so by law.
We hope that we have helped you to better understand 4 of the 8 most common types
of business insurances for small business. In Part II, we will discuss the remaining
4 insurance types that we feel are important for you to understand better.