Owning a small business comes with more responsibilities, but having the right insurance doesn’t have to be a headache

 If you’ve ever considered becoming a business owner, or you already own a small business, having the right insurance can make a big difference for your bottom line. Protect and insure your company’s livelihood by knowing what to look for when it comes to business insurance.

1. General Liability & Property Insurance. As a bare minimum, you will need both for your small business. If you’ve heard the term “BOP” – a Business Owner’s Policy – that simply means you can have both General Liability and Property Insurance lines wrapped into a single policy for more convenience. (A BOP usually also includes a third policy: Business Interruption Insurance. More on that below). A BOP will help protect your business against claims of bodily injury or property damage (damage to your property or if your business damages someone else’s property).

2. Workers’ Compensation Insurance. Have employees? This insurance is something you’ll absolutely need, as it’s mandatory in most states. This type of insurance provides benefits to employees (and sometimes their families) who are injured, sick, or pass away while on the job.

3. Business Interruption Insurance. Also referred to as “Business Income Insurance,” this policy provides coverage for a loss of income that your business may suffer after a disaster. For example, if you had to close your business after a hurricane or wildfire, it would help cover any possible lost income. This is commonly included in a BOP (Business Owners Policy), combined with General Liability and Property Insurance.

4. Professional Liability Insurance. This differs from General Liability Insurance in that it is commonly known as “errors and omissions insurance.” Most professional service providers (doctors and lawyers) include this in their coverage, but these days, professional liability insurance is helpful for many small businesses that could be accused of committing professional negligence. For instance, if you own a small architecture firm and your drawings aren’t developed in time for a key date or your project hasn’t stayed on track, the client (and the client’s business) could sue for lost revenue and damages due to the delay.

5. Commercial Umbrella Insurance. This simply helps extend the current limits of your liability policies. This can be considered “padding” or “extra” insurance to cover any claims that might exceed what coverage you currently have.

6. Commercial Flood Insurance. Even though you may not be located in a flood zone, it’s always important to be prepared. Rivers can swell after fast snowmelt, or unforeseen storms and heavy rains can turn non-flood zones into raging waters. Having commercial flood insurance covers the cost of water-related damage when it comes to floodwater (not interior water leaks).

Usually, you can save money (and time) by combining several policies under one BOP, allowing you more peace of mind and control over what is covered. Your business is your livelihood and should be protected — consider going over these types of insurance policies with your agent. Don’t have an agent or looking for more information? Talk to one of ours.

Capital Insurance Group is the leading property and casualty insurer serving the West Coast since 1898. For over a century, we have been committed to protecting and restoring our communities and building strong relationships with our policyholders. Through our network of local, independent agents, CIG can provide you and your small business with reliable insurance protection, professional advice, and caring, responsive service.