Small Business Insurance Policy Information

Small Business Insurance. If you own a small business, this article will help you understand some the of most common policies available. Commercial insurance helps protect your business and potentially your personal assets from lawsuits and settlements that can reach into the millions.

Having high enough limits in your commercial liability coverage should be a cornerstone of any business plan. Carrying adequate small business insurance to protect your business shouldn't be a question - it's a must if you want to make sure that you don't get put in a position where you have to lose your business or pay money out of pocket to cover expenses associated with a loss.

Learn about small business insurance requirements, costs and coverages including: Commercial General Liability, Commercial Property Insurance, Workers Compensation, Business Owner's Policy (BOP), Errors & Omissions (professional liability), Commercial Auto Insurance and more.

Below are some answers to commonly asked small buiness commercial insurance questions:

You can skip to the following types of small business commercial insurance using these links:

What Are The Commercial Insurance Requirements For Small Businesses? Most states on the US only require two types of commercial insurance policies - and only under specific circumstances: Workers Compensation : Small businesses with any non-owner employees are required by state law to have workers comp insurance coverage (except Texas).

: Small businesses with any non-owner employees are required by state law to have workers comp insurance coverage (except Texas). Business Auto: If the business owns any vehicles (titled to the business), those cars or trucks must have commercial auto insurance.

Any other policies and coverages are optional for the business to purchase. There is not one small business insurance policy that covers every risk. There are different commercial insurance policies that cover various accidents, damages and lawsuits that could financially devastate a small business without the right protection. Some of the most common risks businesses face are covered in these policies.

How Much Does Small Business Insurance Cost? Following is a list of the main factors that determine the costs of small business insurance: Claims History - Similar to auto insurance, more claims can mean higher costs. If you have claims on your policy, your premium will typically increase.

- Similar to auto insurance, more claims can mean higher costs. If you have claims on your policy, your premium will typically increase. Deductibles - Like medical insurance, lower deductibles for small business insurance mean higher premiums. If you raise your deductibles (out-of-pocket costs), your premium will usually decrease.

- Like medical insurance, lower deductibles for small business insurance mean higher premiums. If you raise your deductibles (out-of-pocket costs), your premium will usually decrease. Employees - The more people working for your company typically translates into higher insurance costs.

- The more people working for your company typically translates into higher insurance costs. Experience - A business with more experience can often get lower premiums that newer businesses with less experience.

- A business with more experience can often get lower premiums that newer businesses with less experience. Gross Sales - The more revenue you have, the higher your premium can be. So if your small business earns less than $30,000 annually, your premiums may be lower than a larger corporation that earns more than $2,000,000.

- The more revenue you have, the higher your premium can be. So if your small business earns less than $30,000 annually, your premiums may be lower than a larger corporation that earns more than $2,000,000. Industry - If you own a white collar business like an accountant, your premiums can be lower than a roofing company, where the potential risks for bodily injury and property damage are higher.

- If you own a white collar business like an accountant, your premiums can be lower than a roofing company, where the potential risks for bodily injury and property damage are higher. Location - Your zip code can have a significant impact on your premium. For example, if your business is located in Calistoga, your business insurance costs may be lower than a similar business located in Los Angeles or San Francisco.

- Your zip code can have a significant impact on your premium. For example, if your business is located in Calistoga, your business insurance costs may be lower than a similar business located in Los Angeles or San Francisco. Policy Limits - When you buy a policy, you can decide how much coverage you want, and you typically will pay more for higher limits. For example, a general liability policy with a $1,000,000 limit per claim will cost more than one with a $300,000 limit.



Small Business Insurance Information By State

Small Business Insurance General Information:Types Of Commercial Insurance:

Click on the links below to read state specific small business insurance information, including information on types, coverages, policies, limits and more:

Small Business Insurance Policies

small business insurance needs, costs and coverages are different for each industry and region. While not an exhaustive list, to properly protect your business against lawsuits - consider these additional policies that fall under commercial property and/or casualty insurance:

What Does Business Auto Insurance Cover? The person injured in an auto accident may be a young child, a wage earner, a surgeon, or a homeless person. The costs of the accident may be relatively small or run into the millions of dollars, depending on the victim and his or her injuries. commercial auto insurance helps protect your business if you hurt a person or damage their property. What Is Covered - Commercial auto insurance protects your assets in several ways: Covered auto liability coverage insures your legal obligations that arise from an accident, including lawsuits and their associated costs. The limits you purchase should be high enough to handle the potentially serious injuries and loss of earnings a victim may sustain.

insures your legal obligations that arise from an accident, including lawsuits and their associated costs. The limits you purchase should be high enough to handle the potentially serious injuries and loss of earnings a victim may sustain. Uninsured and underinsured motorists coverages protect you when you are involved in an accident caused by a driver who has no insurance or insurance with relatively low limits. The limits you select for this coverage should be the same as your liability limits.

protect you when you are involved in an accident caused by a driver who has no insurance or insurance with relatively low limits. The limits you select for this coverage should be the same as your liability limits. Physical damage coverage on vehicles directly protects your assets. Comprehensive, Specific Causes of Loss and Collision are the coverage options available. Deductibles should be as high as you can comfortably absorb to maximize the protection provided relative to the premium cost.

on vehicles directly protects your assets. Comprehensive, Specific Causes of Loss and Collision are the coverage options available. Deductibles should be as high as you can comfortably absorb to maximize the protection provided relative to the premium cost. Medical payments coverage and towing expense costs for private passenger vehicles are other optional coverages to consider



To summarize, commercial auto is coverage for vehicles and their drivers owned by the business and/or used for business purposes, and covers these common claims:

Liability

Physical damage

Medical payments

Uninsured motorists

What Does Business Owners Policy Insurance Cover? Small business insurance offers coverage for business property and casualty exposures. Wouldn't it be great if you could get most or all of them in just one policy? If you qualify, the Business Owners Policy (BOP) may be exactly what you're looking for. This single BOP package covers your buildings and business personal property, as well as liability imposed on you because of your premises, operations and products. In addition, it has numerous coverage extensions and optional coverages available.

Much like a general liability policy, the liability coverage offered by a BOP:

Insures bodily injury and property damage liability and the legal obligations that arise from an occurrence. It also covers lawsuits and their associated costs. The limits of insurance selected should be high enough to handle serious claims. This coverage is subject to a number of exclusions.

It also covers personal and advertising injury liability and related legal obligations arising from an offense as well as lawsuits and their related costs. The limits of insurance selected should be high enough to handle serious injuries and the injured party's loss of earnings. This coverage is also subject to a number of exclusions.

Medical expenses coverage applies to medical expenses of individuals injured on your premises or due to your operations, without regard to fault.

Buildings can be more than just a single building. The structure listed and described that has a limit of insurance on the declarations is covered, along with the following:

Additions under construction if not covered elsewhere

Completed additions

Indoor and outdoor fixtures

Permanently installed machinery and equipment

Personal property you own as a landlord in furnished apartments

Personal property you own used to service or maintain the building or premises

Business personal property (BPP) is more than just the contents of a building. The following business personal property is covered when a limit of insurance appears on the declarations and when it is in the described building and within 100 feet of the premises or building while in the open or in or on a vehicle:

Exterior building glass you must cover if you are a tenant

Leased personal property you are contractually responsible to insure

Personal property you own and use in the business

Property of others in your care, custody, or control

The use interest in any improvements and betterments you made or acquired if you are a tenant

To summarize, a Business Owners Policy (BOP) packages general liability and commercial property into one policy, and covers these common claims:

Damaged Business property

Customer injuries

Business interruption

What Does Commercial General Liability Insurance Cover? You don't have any control over the ultimate cost of injuries to a person injured because of your operations, products, or services. The person injured may be a toddler, a contractor, an accountant, or a homemaker. The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries. This is why you need the right amount of small business insurance. Commercial general liability insures the bodily injury liability, property damage, and personal and advertising injury liability exposures of a variety of commercial businesses, enterprises, and ventures. What Is Covered - general liability insurance protects your assets in several ways: Liability coverage for bodily injury and property damage insures your legal obligations that arise from an accident. It also includes the costs related to lawsuits and other legal proceedings. The limits of insurance should be sufficient to handle serious injuries and the injured person's loss of earnings.

for bodily injury and property damage insures your legal obligations that arise from an accident. It also includes the costs related to lawsuits and other legal proceedings. The limits of insurance should be sufficient to handle serious injuries and the injured person's loss of earnings. Liability coverage for damages due to personal and advertising injury insures your legal obligations that arise from an offense. It also includes the costs related to lawsuits and other legal proceedings. The limits of insurance should be sufficient to handle serious injuries and the injured person's loss of earnings.

for damages due to personal and advertising injury insures your legal obligations that arise from an offense. It also includes the costs related to lawsuits and other legal proceedings. The limits of insurance should be sufficient to handle serious injuries and the injured person's loss of earnings. Medical Payments coverage pays the cost of medical care to persons injured on your premises or due to your operations, regardless of fault.



Each of these small business insurance coverages is subject to certain policy exclusions, conditions, and definitions. Following a few examples of how a CGL policy can cover third-party bodily injuries, third-party property damage, and advertising injuries;

A visitor slips and falls on a wet floor in your restaurant.

A tree trimmer accidentally drops a tree on a customers home.

A competitor sues your business over an ad that was published that disparages them, damaging its reputation.

To summarize, general liability is typically required for most commercial leases, and covers these common claims:

Damaged customer property

Libel or slander lawsuits

Slip-and-fall accidents

What Does Commercial Property Insurance Cover? The primary goal of any small business insurance program is to protect the insured's real and business personal property. Tangible property usually represents a significant portion of its total assets, regardless of the size of the business. Protecting your real and personal property is an important element of your insurance program. No matter the size of your business, a large percentage of your assets and resources are tied directly to your property. A commercial property program can provide the coverage you need if a loss should occur. Covered Building When there is a limit of insurance for building on the declarations, the building or structure listed and described is covered property. The following is also considered covered building property: Additions under construction, alterations, and repairs that other insurance does not cover. The materials, equipment, supplies, and temporary structures that are on or within 100 feet of the premises and used to make the additions, alterations, or repairs are also building.

Completed additions

Fixtures. This includes outdoor fixtures.

Permanently installed machinery and equipment

Personal property the insured owns and uses to service or maintain the building or premises

Covered Personal Property When there is a limit of insurance for personal property on the declarations, coverage applies to the following property if it is inside the building or structure at the designated premises. It is also covered if it is outside the building or structure but within 100 feet of the building or premises. Such personal property outside can be either in the open or in or on a vehicle. All other personal property the insured owns and uses for business

Furniture and fixtures

Labor, materials, or services the insured furnishes or arranges on personal property of others

Leased personal property the insured has a contractual responsibility to insure

Machinery and equipment

Stock

The insured's interest in any improvements and betterments it made or acquired if the insured is a tenant

Covered Personal Property Personal property of others is covered when there is a limit of insurance on the declarations but only when: It is in the insured's care, custody, or control.

It is either inside the building or structure at the listed and described premises or outside within100 feet of the building or premises in either the open or in or on a vehicle.

The insurance company pays for loss or damage to personal property of others for only the account of that property's owner.



To summarize, commercial property insurance covers these common claim types:

Fire

Theft or vandalism

Water damage (non-flood)

Wind damage

What Does Workers Compensation & Employers Liability Insurance Cover? Do you own, operate, or manage a business which includes at least one employee? Are you familiar with the laws of regarding workers compensation insurance coverage? The Workers Compensation and Employers Liability Insurance Policy covers your statutory liability as an employer under workers compensation laws. It pays for medical treatment because of injuries and indemnity payments for employees disabled by work-related accidents. It also provides tort liability coverage for legal actions brought against you for bodily injuries to your employees that fall outside state workers compensation laws.

Workers' compensation is a form of insurance that protects a business owner from claims by employees who experience a work-related injury or illness-either sustained on business premises or due to business operations. Typically, workers' compensation covers the employee's medical expenses, rehabilitation costs and at least some portion of their lost wages. If an employee is killed on the job it also pays a funeral benefit.

Workers' compensation benefits are reviewed and voted on by state legislatures each year. The state department of labor has the responsibility of administering benefits for injured workers. In the case of severe injury, judges at the department of labor make rulings on the extent of disability and the amounts that insurance companies are required to pay injured workers.

There are times when the employed worker's injury is not compensable under workers compensation or occupational disease laws. In those cases, Employers Liability coverage responds to the injured worker's allegations of negligence on the employer's part, subject to its terms, conditions, limitations, and exclusions. The coverage the basic policy provides may be broadened, restricted, clarified, or made to comply with specific state regulatory requirements by using a variety of available endorsements.

To summarize, workers compensation is required if businesses has any employees, even one part-time (in most states), and covers these common claims:

Employee medical expenses

Lost wages

Legal costs and fees

What Does Professional Liability Insurance Cover? Professional liability insurance, also known as errors and omissions (E&O), is a type of liability coverage that protects your company against claims that a professional service you provided caused your client to suffer financial harm due to mistakes you made (errors) or because you didn't perform some service (omissions). Professional liability can cover the legal costs of defending your company in a civil lawsuit and some damages if awarded, even if you haven't made a mistake. Eamp;O coverage is not included in a general liability insurance policy.

If your business:

Provides a professional service

Gives advice to clients

Is contractually required to carry

you should probably purchase an errors and omissions policy. Common claims that E&O covers are negligence, misrepresentation, violation of good faith and inaccurate advice.

In the medical and legal professions, professional liability is called malpractice insurance.

To summarize, professional liability insurance helps protect professionals against liability incurred as a result of errors and omissions in performing their professional services, and covers these common claim types:

Business disputes

Professional negligence lawsuits

Work errors, mistakes & oversights

What Does Commercial Umbrella Insurance Cover? Accidents are unpredictable. Some accidents are very small. Others trigger catastrophic events in the lives of the injured parties. Are your policy limits sufficient to protect you if a person you injure must have multiple lifesaving surgeries or requires around the clock care for the rest of her life? If not, your business capital could be required to make up the difference. Commercial liability umbrella is a stand-alone coverage that contains its own coverage, exclusions, and conditions. It provides excess limits over General Liability, Automobile Liability, Employers Liability, and other underlying liability coverage forms or policies. In addition, and because it is a stand-alone coverage form, it may include coverage that underlying coverage forms or policies do not include or provide.

To summarize, commercial umbrella is excess liability coverage that 'extends' the limits of a general liability and/or other liability policies, and offers:

Additional general liability limits

Additional workers comp limits

Additional commercial auto liability limits

What Does Cyber Liability Insurance Cover? The law in requires businesses to notify any residents when an unauthorized person accesses unencrypted personal information. Cyber liability insurance helps your business deal with the costs of data breach and recovery by helping to pay for: Security Breach Expense - Loss that is the direct result of a security breach. Extortion Threats - Loss that is the direct result of an extortion threat. Replacement or Restoration of Electronic Data - Loss to stored computer programs or electronic data within a computer system. Business Income and Extra Expense - Loss that is the result of an interruption is covered when it is a direct result of a cyber incident or extortion threat. Public Relations Expense - Loss that is the result of negative publicity is covered when it is a direct result of a cyber incident or security breach. Security Breach Liability - Loss that is the result of a claim which is discovered during the policy period is covered if the insured is legally obligated to pay it and was due to a wrongful act that takes places before the end of the policy period.



To summarize, cyber liability helps cover a business' liability for a data breach in which their customers' personal information is exposed or stolen by a hacker or criminal, and covers these common claims:

Breach notification expenses

Data breach lawsuits

Fraud monitoring costs

What Does Directors And Officers Liability Insurance Cover? Corporate directors and officers (D&O) have a duty to manage the company in their stockholders' best interests. They are bound to use due care and to be diligent in respect of the management and administration of the corporation's affairs and in the use of its property and assets. Accordingly, they are liable for losses or injuries that are caused by their breach or neglect of duty. Recognizing the need to have competent directors and officers on executive boards, many corporations have put in their by-laws or charters certain resolutions undertaking to indemnify their directors and officers for legal expenses incurred by them in defending suits based on alleged wrongful acts in their capacities as directors and officers. Such indemnification provisions are permitted by most states' laws. Protection varies from state to state. In general, state statutes do not protect directors from claims brought by governmental agencies, or claims alleging violations of securities and exchange laws or other federal laws.

To summarize, directors and officers is a type of liability insurance that covers individuals for claims made against them while serving on a board of directors and/or as an officer, and covers these common claims:

Side A - Protects a corporation's directors and officers when the company cannot indemnify the individuals.

Side B - Reimburses the organization when it indemnifies the individuals, thus protecting the company's balance sheet.

Side C- Also known as "entity coverage," this eliminates disputes of coverage allocation when both the directors and officers and the insured organization are named as co-defendants in a securities lawsuit.

What Does Equipment Breakdown Insurance Cover? Commercial property coverage forms specifically exclude most types of equipment breakdowns while the Equipment Breakdown Protection Coverage Form Insures only equipment breakdown - which covers loss or damage to your covered property that results when covered equipment breaks down. This coverage includes inspection service as a part of the basic coverage because you can eliminate most equipment breakdowns with proper maintenance. These inspections also satisfy any obligation you have to conduct required governmental or statutory inspections. Covered Equipment Four types of equipment you may own or operate can be covered: Mechanical and Electrical Equipment

Production Machinery

Pressure or Vacuum Equipment

Diagnostic Equipment



This small business insurance coverage also applies to your computer equipment, communications equipment, and equipment that generates, transmits, or uses energy.

To summarize, equipment breakdown is coverage for losses due to mechanical or electrical breakdown of nearly any type of equipment, and covers these common claims:

Lost income

Expenses incurred during the restoration period

Spoiled inventory

The cost to repair or replace damaged equipment, including labor.

What Does Employment Practices Liability Insurance Cover? The current level of workplace morale, the state of the economy, and legislation such as the Americans with Disabilities Act and the Family Medical Leave Act have all led to a marked increase in employment-related practices claims and lawsuits. Because these legislative and other legal changes have provided significant incentives for employees to file employment-related claims, employers such as you should be more aware of your susceptibility to such actions. Employment-Related Practices Liability Coverage provides broad insurance protection from employment-related practices claims and lawsuits that are brought against your company, managers and directors and officers. It covers such things as age and gender discrimination, sexual harassment, wrongful discipline and termination and negligent decisions involving hiring, promotion, and compensation. It also applies to breach of employment contract, employment-related emotional distress, and mental anguish, invasion of privacy, libel, and slander.

Claims can come from both current and former employees and even from job applicants you didn't hire! The procedures that you use or don't use in hiring, firing and managing your employees can translate into huge defense costs and legal awards to plaintiffs for your errors or oversights even if they were unintentional.

Allegations are made by employees who claim to have suffered various types of financial loss or emotional injury because of their employers' acts (or failure to act). The list of allegations involves wrongful termination, demoting an employee without justification, failure to hire or promote a worthy employee, unwarranted discipline or abuse (particularly sexual harassment).

Many of these offenses are said to be the result of illegal discrimination on the basis of age, gender, religion, race, nationality, or sexual orientation. Other offenses are claimed to be a violation of the individual's civil rights, or the failure to accommodate a mental or physical limitation or disability.

Sexual harassment by the employer's management or supervisory staff, or by fellow employees, has grown to include allegations of same-sex harassment. In addition to injuries involving sexual abuse, physical, mental or emotional abuses are also being claimed with more frequency.

To summarize, Employment practices liability is coverage for claims made by workers that their legal rights as employees of the company have been violated, and covers these common claims:

Sexual harassment

Discrimination

Wrongful termination

Breach of employment contract, negligent evaluation, failure to employ or promote, wrongful discipline, deprivation of career opportunity, wrongful infliction of emotional distress, mismanagement of employee benefit plans and others.

What Does Commercial Crime Insurance Cover? Most theft losses are comparatively small, fall under the deductible, are excluded, or are uninsured. However, larger ones can put a company out of business as quickly as an uninsured fire. small business insurance - specifically business personal property coverage forms and policies written on an All Risks or Special Causes of Loss basis usually cover theft of property and merchandise by outside parties. However, they usually exclude losses due to employee dishonesty, theft of money and securities, computer fraud, safe burglary, extortion, and related criminal acts. This is why every business needs a sound program of crime coverages for employee theft and other types of criminal and fraudulent activities. Types Of Coverage - The ISO Commercial Crime Coverage Form offer seven types of protection: Computer and Funds Transfer Fraud pays for loss or damage to money, securities, and other property fraudulently transferred using a computer from your premises or a financial institution's premises to an unauthorized person or premises. It also covers loss of funds as a direct result of fraudulent instruction to a financial institution telling it to transfer, pay, or deliver funds from your transfer account.

pays for loss or damage to money, securities, and other property fraudulently transferred using a computer from your premises or a financial institution's premises to an unauthorized person or premises. It also covers loss of funds as a direct result of fraudulent instruction to a financial institution telling it to transfer, pay, or deliver funds from your transfer account. Employee Theft covers loss or damage to money, securities, and other property that one or more of your employees causes.

covers loss or damage to money, securities, and other property that one or more of your employees causes. Forgery or Alteration covers loss caused when someone other than an employee forges or alters a negotiable instrument such as a check.

covers loss caused when someone other than an employee forges or alters a negotiable instrument such as a check. Inside the Premises–Robbery or Safe Burglary of Other Property pays for loss or damage to property other than money and securities inside the premises. However, this is subject to the conditions that either you or an employee must be robbed or the safe burglarized.

pays for loss or damage to property other than money and securities inside the premises. However, this is subject to the conditions that either you or an employee must be robbed or the safe burglarized. Inside the Premises–Theft of Money and Securities pays for theft, disappearance, and destruction of money and securities from inside your premises or a financial institution premises. However, it does not cover theft of merchandise or stock.

pays for theft, disappearance, and destruction of money and securities from inside your premises or a financial institution premises. However, it does not cover theft of merchandise or stock. Money Orders and Counterfeit Money pays for loss as a direct result of you or your employees accepting fraudulent money orders or counterfeit money in good faith and in exchange for merchandise, money, or services.

pays for loss as a direct result of you or your employees accepting fraudulent money orders or counterfeit money in good faith and in exchange for merchandise, money, or services. Outside the Premises pays for loss of money or securities outside the premises, in the care of a messenger or armored car service, or as a direct result of theft, disappearance, or destruction. It also pays for loss or damage to property other than money and securities as a direct result of robbery outside the premises that is in the care of a messenger or armored car service.



To summarize, commercial crime insurance is coverage for any dishonest acts of your employees including damage to your property, fraud or theft of a customer's property, and covers these common claims:

Employee dishonesty

Forgery or alteration

Money and securities

Theft of client's property

What Is The National Association of Insurance Commissioners? Executive Office

444 North Capitol Street NW

Suite 700

Washington, DC 20001

Website:



The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. 444 North Capitol Street NWSuite 700Washington, DC 20001Website: https://www.naic.org/

NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S.

According to the NAIC, "The mission of the NAIC is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental insurance regulatory goals in a responsive, efficient and cost effective manner, consistent with the wishes of its members:

Protect the public interest;

Promote competitive markets;

Facilitate the fair and equitable treatment of insurance consumers;

Promote the reliability, solvency and financial solidity of insurance institutions; and

Support and improve state regulation of insurance."

Small Business Insurance - The Bottom Line

Speak with an experienced insurance broker who understands small business insurance to find the best fit coverage for your business.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

What type of business am I running?

What are common risks associated with this industry?

Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?

Does my state require me to carry this type of insurance?

Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered? General Liability Insurance What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices. Workers Compensation Insurance What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability. Product Liability Insurance What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product. Commercial Property Insurance What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead. Business Owners Policy (BOP) What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance. Commercial Auto Insurance What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident. Commercial Umbrella Policies What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits. Liquor Liability Insurance What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder. Professional Liability (Errors & Omissions) What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating. Surety Bond What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).

Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

Business Interruption Insurance

Commercial Flood Insurance

Contractor's Insurance

Cyber Liability

Data Breach

Directors and Officers

Employment Practices Liability

Environmental or Pollution Liability

Management Liability

Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Small Business General Liability Insurance By Industry

Small Business Insurance

Protect your company and employees with insurance coverage. Read informative articles on small business insurance policies - and how they can help shield your company from legal liabilities.

Construction Contractors

Learn about construction contractors insurance, including how much the premium costs and what is covered - and how liability insurance can help protect your construction business from lawsuits.

Contractors and Home Improvement

Learn about contractor's insurance, including what it covers, how much it costs - and how business insurance can help protect your small business from lawsuits.

Commercial Property

Read up on commercial property insurance coverage, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.

Professional Services

Get informed about professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your small business against claims that a professional service you provided caused your client financial loss.

Advertising, Marketing and Media

Learn about media liability insurance - a specialized form of professional liability insurance policy that provides protection for legal claims brought by third parties.

Real Estate

Learn about real estate insurance coverages including liability and commercial property policies for realtors, mortgage companies and more.

Retail

Read valuable retail insurance policy information. In a retail business, you need to have the right type of business insurance coverage so that your store, employees, and inventory are protected.

Auto Service and Repair

Read about auto service & repair insurance, which provides protection for damages done to customers vehicle's and other property as well as injuries resulting from the work done.

Health and Beauty

Learn about small business health and beauty insurance coverages that help protect tattoo artists, salons, spas, estheticians, cosmetologists, barbers, hairdressers, nail salons and more from legal liability.

Information Technology and Internet

Learn about IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.

Food and Drink

Learn about restaurants, bars, liquor stores insurance coverages. See how food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.

Medical and Dental

Discover small business insurance for medical and dental professionals. Medical malpractice insurance is a type of professional liability policy that protects health care professionals from liability causing in bodily injury, medical expenses and property damage.

Manufacturing and Wholesale

Read informative articles on manufacturing and wholesale insurance. Manufacturing and wholesale companies face many risks due to the nature of their business operations.

Education, Colleges, Universities & Schools

Learn about insurance for educators that helps protecting your professional reputation and other legal liabilities arising from your educational services.

Sports and Fitness

Learn about sports & fitness insurance policies and what they cover so that your customers, employees, and equipment are protected.

Children and Pets

Discover what business insurance policies cover for children and pet related small businesses.

Miscellaneous

Find informative articles on miscellaneous businesses including the types of insurance policies and coverage they need, costs and other considerations.

Non-Profit

Find useful articles on business insurance for non-profit 501(c)(3) organizations, charities and associations.

Arts and Recreation

Read up on small business arts and recreation insurance.

Agribusiness

Learn about small business agribusiness insurance - a type of commercial insurance protects farmers against loss of, or damage to crops or livestock.

Small Business Commercial Auto

Learn about commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.

Small Business General Liability Insurance Information

Additional Resources For Small Business Insurance

Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.

Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.

A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?

Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.

Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.

You need a written plan that allows you to get your operations back up and running as quick as possible.