There are a lot of steps required to open a small business; one of these tasks is purchasing the right type of business insurance for your company. Before you can purchase insurance, you need to know what policies you need for your business.

The business insurance that you need depends on a few factors, including state laws, whether your business has employees, and your business’s operations. Here are a few types of business insurance that many small businesses need. 

1. Liability Insurance

Every business needs general liability insurance. General liability insurance protects your business if it causes property damage or bodily harm. 

If your business sells a product, you’ll also want to buy product liability insurance. This protects your business if one of your products causes property damage or an injury. 

Businesses that provide services need professional liability insurance. If you make a mistake that adversely impacts your customers, professional liability insurance will cover your legal costs.

2. Business Income Coverage

Business income coverage replaces income that’s lost due to property damage, fire, storms, or theft. 

3. Commercial Property Insurance

If you own or rent a building and equipment for your business, you need commercial property insurance. This type of insurance protects your business’s physical assets from theft, vandalism, fire, storms, and explosion. 

You’ll need additional coverage to protect your physical assets from floods or earthquakes. 

4. Worker’s Compensation Insurance

For businesses with employees, worker’s compensation insurance is needed to cover the treatment costs for workers who experience a work-related illness or injury. This insurance also provides financial relief for their lost income.

5. Commercial Auto Insurance

Commercial auto insurance pays for damage or injury caused by accidents that occur while you or an employee are operating a business-owned vehicle for business reasons. 

6. Commercial Umbrella Insurance

Commercial umbrella insurance allows you to extend the limits of your other insurance policies, offering additional protection for your business. 

Learn More About the Insurance Required for Small Businesses

If you have more questions about how to start a business or want to make sure your business is protected, Quality 1st Insurance can help.