If you’re in the process of starting up a small business, give yourself a pat on the back. By your planning, budgeting and marketing (and myriad other campaigns) you will soon be opening your doors to the public. Once those doors open, you’re not only inviting in new customers, you’re also inviting risk. Protect your business from the start by investing in the 7 [types of business insurance below](https://coverhound.com/business-insurance) — you won’t regret it.
General liability insurance offers financial coverage for the legal defense and any damages if your employees or merchandise are alleged to have caused property damage or bodily injury to a customer. Did you know that legal action costs small businesses over [$100 billion](https://www.americanexpress.com/us/small-business/openforum/articles/what-the-rise-in-lawsuits-means-to-your-small-business/) a year? Over [40 percent](http://quickbooks.intuit.com/r/business-planning/much-money-need-start-business/) of all small businesses started with less than $5,000 in their account. Could your business afford being taken to court so early in its infancy, especially if it isn’t making a profit yet?
Also known as Errors and Omissions insurance, professional liability insurance offers financial coverage for your business’s legal defense and damages should a customer sue you for providing faulty advice services. Businesses that would benefit most from obtaining a professional liability insurance include accounting services, law offices and private medical practices.
Many new small business owners make the assumption that, if they’re running their business out of their home, then their homeowners insurance will cover the loss or damages of their equipment and merchandise, this is not true. If you own the structure or are running your business or your private property, homeowners insurance will not cover any losses or damages to your business. Property insurance will. Property insurance covers the financial costs of lost, damaged or stolen business equipment, products and the structure itself.
If you should experience such a massive loss as caused by vandalism or fire to your business, business interruption insurance will financially cover said business for its lost income. If your staff is unable to work, your business cannot make sales or your product distribution has been halted, business interruption insurance will cover the costs.
Perhaps the most popular of business insurance policies is BOP insurance. This policy offers liability insurance, property insurance, business interruption insurance, crime insurance and fleet insurance. The only policy not included under BOP coverage is professional liability insurance. As an added bonus, small business owners who purchase BOP are given a discount because they have opted to bundle their insurance coverage!
This insurance type protects your employees and their families should they get hurt on the job. [Workers' compensation offers](https://coverhound.com/insurance-learning-center/supporting-your-staff-the-benefits-of-workers-compensation) medical benefits and wage replacement. To get workers compensation, your employees must sign a waiver giving up their rights to sue you and the company should they get hurt on the job.
If you run a delivery or shuttle service, fleet insurance is 100 percent necessary. Fleet insurance acts much like your private auto insurance policy does in that it offers liability and comprehensive coverage should your employee be involved in an auto accident during working hours performing a work-related service. Your private auto insurance does not cover fleet vehicles, nor will your employees’ private coverage plans, this is what makes fleet insurance a must-have.
When your business is covered, your business is safe. For a free business insurance quote, [visit CoverHound today](https://coverhound.com/business-insurance).
Insurance shopping simplified
Insurance shopping simplified
