Ask SCORE: What type of insurance should I have to protect my small business?

No matter what type of business you own, you operate under some degree of risk. Sadly, no business is completely immune to lawsuits. Fortunately, however, a variety of insurance options exist to help protect small businesses.

Among the most common types of small business insurance are…

General Liability Insurance

Also known as commercial general liability insurance, this type typically covers claims associated with accidents or injuries on your property or your clients’ premises. General liability policies offer financial protection in the event of bodily injury, property damage, medical expenses, libel, slander, and the cost of defending lawsuits. 

Home-Based Business Insurance 

Because homeowner’s insurance policies don’t usually cover home-based business losses, you might consider adding riders to your policy if you run your business from your home. They can help protect you against financial loss due to normal business risks such as property damage. Realize, however, that coverage may be limited and other forms of insurance might provide better protection.

Professional Liability Insurance

This type of insurance is generally geared toward professional services providers. It’s also commonly known as errors and omissions insurance and protects your business against claims of damages that your advice or services caused through malpractice, errors, or negligence.

Product Liability Insurance 

If your company manufactures, sells, or distributes products, it may be liable for its safety. Product liability insurance offers protection against claims that a product caused bodily injury or harm.

Commercial Property Insurance

Commercial property insurance can help you recover financially if disaster strikes and damages things like your computers, furniture, inventory, equipment, office building, and other property. Covered events might include wind, hail, fire, theft, or vandalism. Some polices also include business interruption insurance that helps make up for lost income for a period of time if loss of your commercial property prevents you from conducting business.

As you explore if your company may need any of these types of business insurance or others, visit the website for tips on how to make an educated decision. Also consider reaching out to the Kitsap SCORE branch office for guidance… find a mentor. SCORE mentors have wide-reaching expertise and experience in helping small businesses face challenges and grow their companies.

1 thought on “Ask SCORE: What type of insurance should I have to protect my small business?

  1. Hal Brookins

    Talk with an insurance broker. He can customize your coverage. He/she will have far more companies to select from rather than an average agent representing just one firm. I most cases the broker will be cheaper and provide you with better coverage.



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