If you run your own small business – or are thinking of starting one – business insurance is a must-have product to keep your company protected. It shields you against everyday risks that come with your normal business activities including mistakes, accidents, theft, damage and legal fees, but the exact cover you need depends on the type of business you run.
What types of companies need business insurance?
Some businesses, professions, and service providers are required by law to have insurance. For example, lawyers, doctors, taxi drivers, and independent financial advisors require specific coverage before they are allowed to operate. Even when it is not required, it’s still highly recommended for all businesses to protect themselves against potentially expensive liabilities.
Many startups perceive insurance as a luxury, something that they may purchase once they are further along in the company’s development. However, this is a risky approach to take. Any business, small or large, that is serious about sustainable growth should not postpone the process of purchasing the right cover.
What type of insurance should my business have?
When assessing the type of insurance your company should have, it’s advisable to speak with a CG insurance agent. They will guide you through the different types of coverage available and provide you with a list of options. Below are some examples of the most common types of business insurance and the issues they protect against.
Public Liability Insurance
If you welcome clients onto your business premises, it is essential to take public liability insurance. Public liability insurance can pay for damage or injury claims made against you by a member of the public.
Example: A customer visits your shop and is injured by an item falling from a shelf. Public liability insurance will pay for any medical expenses your customer claims against you as well as any legal fees involved in settling the case in court.
Get a Public Liability Insurance quote >
Professional Indemnity Insurance
Professional indemnity insurance can cover compensation claims made against you due to a mistake in your work which leads to a client’s financial loss. If you offer advice or a professional service, or if you handle client data or intellectual property, then professional indemnity is a must-have for your business.
Example: An accountant makes a mistake which results in their client needing to pay a large tax penalty. Professional indemnity insurance will protect the accountant from having to pay out-of-pocket for the financial costs of any damages they have caused.
Get a Professional Indemnity Insurance quote >
Business Interruption Insurance
Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected insured event that stops you from operating. It will help provide the income lost until repairs are made and business can be resumed.
Example: A fire makes your store unusable and unable to sell merchandise. During the time it is closed for repairs, business interruption coverage helps financially offset your income losses as well as pay for day-to-day expenses including employee payroll.
Get a Business Interruption Insurance quote >
Employers’ Liability Insurance
Employers’ liability insurance is designed to protect you and your employees if they’re injured or become unwell as a result of working for you. This insurance will cover the associated legal and compensation costs, as well as any other related damages.
Example: Your employee falls and is injured at work, and decides to seek compensation from your company. The cost of the lawsuit and/or compensation for loss of wages is covered by the employer’s liability insurance policy.
Get a Employer’s Liability Insurance quote >
Worker’s Compensation Insurance
Worker’s compensation insurance helps to protect both you and your employees due to work-related injury or illness. For the employee, workers compensation covers the cost of medical care, provides lost wages and more. For the employer, worker’s compensation provides peace of mind by helping the business avoid expensive legal costs while offering a valuable benefit to workers.
Example: Your employee has a car accident while making a delivery and suffers an injury which puts them in hospital for a month. Their medical costs and lost wages while in recovery are paid for by this insurance policy.
Get a Worker’s Compensation Insurance quote >
Buildings and Business Contents insurance
If you own your work premises, commercial property insurance is very important to have. This type of insurance is designed to help pay for repair or rebuild costs should your business buildings suffer damage, for example during a natural disaster, vandalism, water leaks, or countless other possible scenarios.
Example: A small fire breaks out in your office due to bad wiring. With this insurance policy, you will receive a payment to conduct all necessary repairs to restore the property.
Get a Building and Contents Insurance quote >
Stock Insurance
Stock insurance helps cover loss or damage to the physical products you sell. Having stock insurance means that you will be reimbursed if your stock is stolen, damaged by fire, water or any covered loss in your policy.
Example: Your warehouse is flooded in a hurricane. Half of your stock is damaged and becomes unsellable. If you have stock insurance, you can submit an insurance claim to recoup your losses and make a replacement order.
Commercial Vehicle Insurance
Commercial vehicle insurance is similar to your personal car insurance but protects your company vehicles such as cargo vans, towing trailers, contractor’s minivans and more .
Example: Your cargo van is damaged in an accident. You will receive an insurance payment to get it fixed up and back on the road as soon as possible.
Get a Commercial Vehicle Insurance quote >
The next step
Small and medium-sized enterprises can be especially vulnerable against the potential risks caused by accidents, employee sickness, lawsuits, and more. Talk with a CG representative about which business insurance policies can help protect you and keep your business up and running when the unexpected happens.
