As a small business owner, you understand how crucial it is to have proper coverage for potential risks. You can approach a commercial insurance broker or buy a policy directly from insurance providers or agents.
But since each establishment has its set of specific requirements, you can safely assume that not all insurance policies offer the same protection. So, it is advisable to learn about various types of small business insurance that can secure your finances.
Type of Small Business Insurance Suitable for You
Typically, most business owners choose a combination of two or more insurance packages to cover their assets. Working with a business insurance broker will give you the best solution after a full assessment of the level of risk you face.
Here are the five primary types of small business insurance at a glance:
1. General Liability Insurance
At the core of every insurance policy for small businesses is the CGL insurance or commercial general liability. General liability offers your business protection from legal liabilities arising from third-party injuries and property damage.
Suppose you are a remodelling contractor or own a retail facility. You accidentally rip a client’s kitchen cabinets, or someone gets injured at your store. You will be accountable for the resulting expenses. Liability coverage insures your business against these costs.
2. Commercial Property Insurance
You can think of commercial property insurance as the opposite of general liability. Here, you have coverage for your assets from external events and things beyond your control, such as vandalism, theft, fire, floods, etc.
This small business insurance policy covers assets within and outside your building like electronics, inventory, machinery, furniture, fences, signs, and the physical structure itself. You can get financial reimbursement for actual costs, repair, or replacement.
3. Errors & Omissions
E&O policies offer protection against potential lawsuits following errors or negligence while rendering your services. For instance, an unsatisfactory outcome doesn’t match the promised service or financial harm to a client.
Errors and omissions insurance has many different names depending on your business. You call it professional liability insurance if you provide financial, legal, construction, and other services and malpractice insurance in the medical and healthcare sector.
4. Equipment Breakdown Insurance
If you use business equipment for daily operations, it calls for equipment breakdown insurance. Even if you have a small bakery or a local landscaping company, you use expensive electricals like ovens and power tools.
They are the backbone of your trade, and any external risk to these devices can pose significant losses to your business. With equipment breakdown insurance, you can recover the damages and get back to running the business without delay.
5. Cyber Insurance
Irrespective of the business you operate, having a cyber insurance policy ensures that you are compensated for IT-related losses. Even if you have a physical storefront and don’t take orders online, you probably use payroll or inventory management technology.
Cyber insurance offers security against malicious attempts to steal sensitive information or corrupt your records. With dedicated cyber liability insurance, you can safeguard client, vendor, employee, and business data.
Get a Quote from Top Insurance Companies
Comparing insurance rates and coverage is a lengthy process. Leave it to the professionals and focus your efforts on making your business more profitable.
Beneficial Insurance Solutions can help you get the ideal insurance product for your unique needs. Call us at (403) 250-3121 for small business insurance in Alberta, Calgary, and nearby locations!