The 3 Most Common Small Business Insurance Needs

Broadly speaking, all businesses should have basic commercial coverage, including property insurance, which covers damages to business property, and liability insurance, which covers damages to other parties. But depending on your sector, additional specialized coverage may be warranted. Below are some options.

For any business that has employees: Workers’ compensation insurance protects against employee injuries that occur on the job. Most states require businesses with employees to carry some type of workers’ compensation insurance.

For any business that has equipment: Mechanical breakdown insurance insures against the breakdown of equipment, such as boilers and other machinery. But it’s not just industrial equipment that is covered: mechanical breakdown insurance also covers fire damage to office equipment, such as computers.

For any business that transports property: It’s called inland marine insurance, but it’s not about boats: it covers damages to goods (or their theft) when transported over land or while temporarily warehoused. For example, if you’re a dry cleaner, this insurance would reimburse you for customers’ clothing that is damaged while it’s being transported from your dry-cleaning facility to your storefront.

For any business that can’t be out of business temporarily: When you experience property damage or loss, you could be put out of business for a while. This insurance reimburses you for various expenses (from salaries to rent) and losses (such as net profits) that would have been experienced during that period.

For any construction business: If you’re constructing a building, consider builder’s risk insurance. It protects against damage to buildings while they are being constructed.

For any business that benefits from old building codes: Ordinance insurance, also called law insurance, reimburses you for the expenses associated with demolishing and rebuilding to code when your building has been partially destroyed.

For any business with windows: As oddly specific as it sounds, glass insurance covers broken windows. (They are expensive!)

For any business that could make mistakes: Errors and omissions insurance covers accidental mistakes that hurt a third party, such as an accountant failing to file a tax return on time or a notary public completing notarizations improperly.

For any business that uses cars: If you use vehicles, from cars to trailers, consider a commercial automobile policy. It will provide coverage if your vehicles are stolen or damaged or if the driver injures a person or property.

For any business with directors and officers: Directors’ and officers’ insurance, as the name suggests, covers the costs of lawsuits against directors and officers.

For any business that leases property: If you have a lease, consider a commercial renter’s policy. It covers damages to any improvements you make to your space as well as damages the negligence of your employees cause to the space.

For any business worried about natural damages: Property insurance will cover the costs of rebuilding but not of removing the debris. Debris removal insurance will cover this, though.

We can help you review your current insurance coverage and determine what special coverages you may need. Call or email us today.