What Types of Insurance Does My Small Business Need?

Having the right insurance for your small business is just as important as having the right facilities, equipment, processes, systems and employees. They all work together like the finely-tuned operation that your company is – and like all those other essential pieces, your insurance needs are apt to continue evolving, so it’s equally critical to stay abreast of what you need and where to find it.

A Menu of Business Insurance Services

Like personal insurance, you buy small business insurance for the purpose of protecting your company from risk. This may mean purchasing:

  • General liability insurance: for protection from the costs of bodily injury or property damages.
  • Business property insurance: to guard against expenses related to your physical facility, tools, equipment, furnishings and inventory.
  • Business income insurance: to replace lost earnings when your company cannot operate due to a covered loss, such as a theft, fire or flood.
  • Workers’ compensation insurance: This one isn’t usually optional; rather, it’s required in most states. It provides benefits to employees for work-related injuries and illnesses.
  • Commercial auto insurance: to pay for expenses from covered, work-related auto accidents if you or your employees use a vehicle on the job.
  • Professional liability insurance: Also known as errors and omissions insurance, this helps protect your company against claims that your professional services or advice caused a client financial harm.
  • Data breach insurance: to help cover liability costs and pay for identity protection solutions, legal fees and public relations if your business suffers a data leak or cyber-attack.

How Much Does It Cost?

The cost of small business insurance depends on numerous factors including your industry, the number of people you employ, the size and type of property you own, your payroll, and your claims history. But regardless of these variables, the best way to keep costs low is to minimize risk: reduce the likelihood of accidents, errors or other costly mishaps occurring at your company.

  • As an alternative to purchasing business income, commercial property and business liability insurance separately, you may want to consider a business owner’s policy (BOP), which combines all three. In addition to being more affordable, this option can be easier and less time consuming to manage.

Looking for Business Insurance?

As a full service professional employer organization (PEO, Lyons HR offers a spectrum of talent management and business solutions including risk management. And, Aligned Insurance is a member of the Lyons HR Family and a highly qualified provider of business insurance products and services. Aligned Insurance was formerly known as Calhoun Insurance in Jacksonville and as Coosa Insurance in Rainbow City. To learn more about Lyons HR and Aligned Insurance, read our related posts or contact us today.

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