When you think of business insurance, what comes to mind? Perhaps you have heard of it but aren’t too familiar with the inner workings of it all. If you are a business owner or plan on owning a business in the future, this type of insurance is essential. Stay tuned for a breakdown of how it works.

What Is Business Insurance?

Think of business insurance as a financial safety net that covers certain expenses in case something happens to your company. Like any other kind of insurance, you are provided with peace of mind knowing you will not sink financially if unforeseen circumstances take place. While you will have to pay monthly fees for insurance, it will pay for itself and then some if you need financial protection.

Types of Coverage

Different types of business insurance offer different coverage. The following list will help you determine which insurances apply to you the most:

Workers’ Compensation: Businesses pay for this type of insurance to ensure that employees receive medical care and/or compensation if they get injured on the job. This way, business owners don’t need to pay out of pocket for expensive benefits. ADP offers workers compensation insurance and can provide you with an online price quote before committing.

Professional Liability: If a client or customer accuses you of negligence, your coverage can protect you from the costs of mistakes made by you or your employees. Biberk offers liability insurance with deals up to 20% off your plan. They will also provide a price quote made for you online.

General Liability: If your business’ product or service causes some type of harm to the consumer, general liability insurance covers the cost of physical or personal property damages. NEXT offers several types of insurance, one of which is general liability. If you decide to use them for multiple policies, you can get 10% off.

Commercial Auto: If your business requires on-the-job vehicle usage, getting auto coverage is a must. In case any vehicle gets damaged or an employee is hurt while driving, commercial auto insurance will have your back. Progressive is a trusted company willing to provide a quote online or over the phone if you are interested in coverage.

Business Owners Policy: Also known as BOP insurance, this policy will combine different business coverages together, such as general liability and property insurance. Hiscox will offer specialized plans that cater to your needs.

Cyber Insurance: In the event of a data breach leaking confidential customer information that wasn’t supposed to go out, cyber insurance will help cover the costs. Nationwide has three different policies to select from that could help your business.

Business Income Insurance: If your business loses major income or is forced to temporarily close down due to an accidental fire, theft, etc., your income insurance will kick in to help and make sure that you stay afloat during hard times. The Hartford offers customers insurance for as little as $25 per month.

Depending on the location of your business and what you’re looking for, the price quotes will vary.

Business Size

Another factor to consider before deciding what insurance is right for you is the size of your business. Some companies cater to small businesses, while others offer better coverage to large-scale companies. The Hartford is a great example of an insurer that has policies for both large and small businesses. If your business has over 500 employees, it’s probably time to look into big business plans.

Do Self-Employed Businesses Need Insurance?

If you are self employed and run a one-person operation, it’s understandable if you’re hesitant to pay for business insurance. Since you’re the only one, there aren’t other people to make mistakes or have accidents at the workplace that could cost you. However, there are still plenty of insurance types that would apply to you and could help in the long run. For example, general liability insurance might be good to have in case your product accidentally malfunctions and hurts a customer.

Better Safe Than Sorry

It’s always easy to not pay for insurance and just hope for the best. On the other hand, you don’t want to be unprepared if something were to go wrong. Business insurance is an investment that protects the establishment you’ve started. You may never need help from your insurance policy, but you will always be relieved if you actually need it and it’s available. Evaluate your options and get the coverage you need.