What types of BUSINESS INSURANCE Do You Need for Your Small Business?

To be protected in times of emergency, every business must have commercial insurance.

To help your company get through any difficult times, small business insurance is vital. Insurance can help protect your business in the event of a lawsuit or property damage. You should always know about the cost of insurance for your small business, so you can choose right.

You could find yourself in a difficult position if you do not have the right insurance. You could be held responsible for damage sustained by employees in accidents at work, or against claims made by customers or partners.

What type of insurance do you need for your business? 

It is not only a good investment but also a vital one. It will help you to protect your company, finances, and assets.

Many factors will affect the type of insurance you need. The type of business you own, the number of employees you have, your ability to drive for your business, and what sector or state your business operates in all play into which insurance you need. While many insurances do not need to be purchased, some are required by law.

Insurance types required by law

There are many types of commercial insurance. However, there are some you should have. They are required by the federal government if you have employees. These are the types of insurance that you must have:

  • Workers’ compensation insurance
  • Unemployment insurance
  • Insurance for the disabled

Depending on the state you live in, additional types of insurance may be required for small businesses.

Types of commercial insurance by industry

Small businesses are not all created equal. Your business and whether you have employees, or your industry will determine the type of insurance you need. Different types of insurance policies are required depending on these factors.

Next, we’ll break down which type of insurance is best for certain industries.

Insurance is required for the restaurant industry

Restaurant owners should have both general and specific insurance policies.

If a customer requests compensation for damages caused by their visit to your restaurant, this will protect your business. Your commercial general liability insurance will protect you if someone slips on wet floors. Other possible losses are also covered by this insurance.

It’s also a smart idea to get Business Owners Insurance (BOP), as it covers the same items as commercial property insurance.

Consider alcoholic beverage liability insurance if your restaurant serves spirits. You might be sued by someone who was served alcohol after they have left. This is covered by liability insurance for alcoholic beverages.

Property

To protect your restaurant’s contents and building, you should also get property coverage. This covers your restaurant and contents in the event of a fire, vandalism, flood, or other natural disasters.

Employers

You will need employees if you own a restaurant. You should make sure that your insurance covers lost wages, medical expenses, and rehabilitation costs for your employees.

If an employee is hurt on the job, you should have workers’ comp insurance. It’s also a good idea to offer your employees health insurance.

All these insurance types are about $ 4,300 per year.

This cost can vary depending on where you live, how big your business is, and what insurance policies you choose.

Construction industry insurance

You will need to have insurance for your business if you are involved in construction. Depending on where you live, the types of insurance that you need and the cost of them will vary.

In case of an accident, this insurance will protect your business. This covers bodily injury to persons and property damage while your employees work on the construction.

This type of insurance has an average premium of $ 361 to $ 924.

Employers

Workers’ Compensation is the second type of insurance that you should have.

Accidents can happen due to the physical activity of construction workers and the heavy use of machinery. This insurance covers your employees in case of an accident while at work.

This type of insurance costs between 75c and $ 100 per hour depending on the state.

It’s also a great way to build loyalty among your employees and offer them insurance.

Vehicles

You will most likely own company vehicles, which you and your employees may use for work. Therefore, you should also have commercial insurance. Commercial auto insurance is required for anyone who uses a vehicle belonging to your company.

This insurance is affordable for small businesses owners and costs between $ 750 and $ 1,200 per vehicle per year.

Other types

Consider also purchasing insurance to protect you from contractors who fail to fulfil their contractual obligations.

This type of insurance has a median premium between $ 100 to $ 185.

Insurance is required for the hospitality industry

It is recommended that people who work in the hospitality industry purchase the main types and levels of insurance.

  • General liability insurance
  • Commercial property insurance
  • Workers compensation insurance
  • employee health insurance
  • Commercial vehicle insurance
  • Liability for alcoholic beverages

The insurance requirements for the hospitality industry are subject to change depending on the type and location of your business.

If you own a hotel at the beach, for example, you might want to buy commercial insurance to protect you against flooding or other natural disasters.

This situation will mean that a resort hotel will cost significantly more than a smaller boutique hotel.

A limited-service hotel room can cost about $ 280, while a resort room will cost approximately $ 1,126.

 

Property

Additionally, you should have property and contents insurance to protect the building as well as the contents in case of fire, floods, vandalism, vandalism, or other unfortunate events.

This insurance is very important for the hospitality industry because large buildings often contain valuable items.

All of these can be included in commercial property and casualty coverage.

 

Responsibility

You will also need general insurance to protect yourself from possible accidents.

Commercial insurance should be considered for product liability. Your company most likely sells products. You need to ensure that you have covered if a product you sell causes injury to or illness to a customer.

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