What Types of Insurance Does a Small Business Need?

March 22, 2024

Starting a venture from scratch can be exciting and full of endless potential, yet in all that excitement adequate precautions must be taken. Summit Cover small business insurance provides invaluable protection and peace of mind during this important journey. Understanding “What Types of Insurance Does a Small Business Need?” can be complicated, which is why we're here to walk you through all the essential types of coverage your small business requires to thrive!

1. General Liability Insurance

If an accident happens at your establishment or one of the products sold results in property damage caused by malfunction. In such instances, general liability coverage from Summit Cover provides invaluable frontline defence - from legal expenses and settlement costs related to claims like these right through to legal defence costs arising out of them.

  • Bodily Injury: If the customer, vendor, or any other person is injured on your property, and the injury occurs as a result of the negligence of your business, the policy will pay for medical coverage as well as lost wages for the injured person.
  • Property Damage Coverage: If by any chance your business incidentally causes harm to somebody's property, this insurance can help take care of repair or replacement expenses.
  • Personal and Advertising Injury Coverage: This insurance provides coverage to claims that are against the statements made in the advertising materials that are used for promoting purposes and are about slander, libel, or copyright violation.

2. Professional Liability Insurance

If you are offering professional services including consulting, design or accounting, then professional indemnity insurance has to be a paramount asset in the list of protecting yourself against any claims that your professional services caused clients financial loss. How this works:

  • Negligence Coverage: For instance when a client alleges a breach of the professional standards and that the cost of these standards has caused a financial loss for the client, this policy can help with the legal defence costs and any settlement payments that are related to this kind of claim.
  • Misrepresentation Insurance: Imagine if you have a customer come forward to accuse you of misrepresenting your services or using false or misleading claims about their services, the misrepresentation insurance will be a guarantee to the safety of your business.

3. Business Property Insurance

Summit Cover's Business Property Insurance can protect these physical assets against multiple risks that threaten business operations - like:

  • Fire: Covering damage due to fire, smoke or lightning strikes.
  • Theft: Reimbursing victims for stolen property that has been lost or taken.
  • Vandalism: Expanding coverage against damage resulting from acts of vandalism or malicious intent.
  • Weather Events: Your policy may offer coverage against damages caused by storms, hail storms and floods.

4. Business Owners Policy

Summit Cover's BOP simplifies and costs-cuts business insurance needs through combined liability and property coverage for low-risk businesses by bundling both policies into one simple package - ideal for many small enterprises looking for cost-efficient coverage options that could also lower premium costs over time.

Read more about “Small Business Insurance” here!

5. Workers' Comp Insurance

Your workers are the core of the business, so workers' compensation insurance is a bona fide measure for both them and the organization. In many states, this policy covers medical expenses and wages lost to a work-related illness or injury that occurs in such a course.

Workers' compensation insurance covers key elements that include: 

  • Medical expenses: Expenses that relate to the treatment of the working injuries or sicknesses that might occur at the workplace. The costs that a patient incurs involve visits to the doctor, hospitalisation and rehabilitation services.
  • Lost Wages: In the event whereby a worker gets an illness or injury related to work that results in him being disabled, the workers' comp insurance serves as the primary financial help by helping him replace the money he used to earn before the illness or injury.

Expanding Your Coverage: Customizing Your Protection

Summit Cover has designed its coverage options to address specific risks faced by small businesses, offering tailored supplementary protection policies such as those listed here:

  • Commercial Auto Insurance: This is the most obvious thing, and especially for business-type cars.
  • Data Breach Insurance: At the same time, the cyber liability policy has a broader coverage which includes financial loss due to data breaches as well as data restoration and credit monitoring that are extended to those affected.
  • Cyber Liability Insurance: This coverage can help your small business with the costs of dealing with data breaches and any cyber threats in today's online environment, for instance, legal costs, investigative fees and costs of notifying affected parties of breaches. 

Find out our post "10 Cybersecurity Tips for Small Businesses," which will help you to get even more prepared for threats on the web.

Align with Summit Cover for Peace of Mind

At Summit Cover, we understand the unique challenges small businesses face. Our highly qualified insurance specialists work closely with you to assess your specific requirements and develop an insurance strategy tailored to safeguard its growth while meeting all its protection needs.

Summit Cover offers competitive rates, flexible payment plans and unparalleled customer service. Get in touch with us now to request your complimentary quote and allow us to help safeguard your aspirations while leading you confidently down the path toward success!

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