Why insure your business

Get A Quote. Clear Blue Insurance. Complaint level Extremely low. Best financial strength rating A- Excellent. Get A Quote Via Simplybusiness. Farmers Insurance. Best financial strength rating A Excellent. Complaint level Very low. Frankenmuth Insurance. Cincinnati Insurance. Westfield Insurance. General liability insurance gives a business protection against liability claims such as bodily injury and property damage to others. Commercial property insurance covers the physical property of your small business, such as fire damage or theft.

Workers compensation insurance offers coverage for when an employee becomes ill or injured because of their job. Commercial auto insurance covers the vehicles you use for business purposes. Cyber liability insurance can pay for recovery costs if your computer system and data gets hacked.

Commercial property insurance is also called business property insurance. Get Quote. A BOP includes: General liability insurance Commercial property insurance Business interruption insurance , which helps you recover lost business income if your business is unable to open because of a problem such as a fire A BOP is less expensive than buying separate insurance policies for this same coverage.

You would need to have a separate commercial flood policy for flood coverage Fraudulent and intentional acts Wrongful termination, unless you have an employment practices liability policy. And workers compensation insurance is required in most states. What Is Commercial Umbrella Insurance? Information provided on Forbes Advisor is for educational purposes only.

Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor adheres to strict editorial integrity standards. If your business manufactures products to sell, product liability insurance is very important.

Any business can find itself named in a lawsuit due to damages caused by its products. Product liability insurance protects a business in such cases. Any vehicles used for business should be fully insured. At the very least, businesses should insure against third-party injury, but comprehensive automobile insurance will cover the vehicle in an accident, as well.

If employees are using their own cars for business, their own personal insurance will cover them in the event of an accident. One major exception is if a person is delivering goods or services for a fee, including delivery personnel. Business interruption or continuation policies are a type of insurance that is especially applicable to companies that require a physical location to do business, such as retail stores or manufacturing facilities.

Business interruption insurance compensates a business for its lost income during events that cause a disruption to the normal course of business. Corporate Insurance. Business Essentials. Car Insurance. Actively scan device characteristics for identification.

Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Even if you win the suit, you could go out of business due to the cost of legal defense.

Rather than worry about what could happen, liability insurance can give you peace of mind, enabling you to concentrate on what truly matters — running a successful business. Findlaw has a list of calamities that, should they occur, could result in a lawsuit. Some are humorous, but all are worth reviewing. What happens to your business in the event of a natural disaster, such as an earthquake or flood?

It can help a business survive a serious disaster by protecting against loss of income. BOP also compensates for normal operation expenses e. Some companies not only choose to insure lost income but include protection to pay employees, for up to 12 months.

If anything goes wrong with the work you do for them, you have a way to compensate. It builds trust, the currency of a modern-day economy. Your most valuable asset is not the products or services you offer, the equipment you take so much care to maintain or even the brand you struggled for years to build.

No, your most valuable asset is your employees, and it pays to protect them in the event of an accident. Floods, tornados, hurricanes and fires caused by lightning all qualify.

Two types of property and casualty insurance protect against such loss: all-risk and peril-specific. All-risk policies cover events except for those expressly mentioned. Peril-specific policies list particular risks and cover fire, floods and other specified acts of God. Company-owned life and disability insurance coverage provide payments to cover the loss of income you generate. In the event of your death or disability, it provides funds for the purchase of your interest under a buy-sell agreement.

It can have the positive benefit of attracting and retaining qualified employees. Second to salary, job seekers look for benefits packages that include life, health, disability and long-term care insurance. No business owner has a crystal ball hidden in a closet that can predict what might happen in the future. With the proper business insurance, small business owners can achieve peace of mind and focus their attention on what they do best — operating a productive, profitable and personally rewarding business for years to come.

Insurance Image via Shutterstock. Insurance is very important because it serves as a safety net for businesses in case things go wrong. It can also help in making the business more stable. My brother has been wanting to start a shipping business and is trying to decide what kind of services he will need.