What Insurance Does a Small Business Need in 2023?

The Basics of Small Business Insurance

The purpose of small business insurance is to protect a business from potential risks and liabilities. Insurance helps to cover costs associated with bodily injury or property damage caused by a business, its products, or its employees. Depending on the type of business, insurance can be necessary to protect the business from financial loss.

Types of Small Business Insurance

The type of insurance a small business needs depends on the industry. Common types of insurance include:

General Liability Insurance

General liability insurance is the most common type of small business insurance. It covers accidental bodily injury, property damage, and personal/advertising injury caused by the business. It also covers medical expenses for anyone injured on the business premises.

Property Insurance

Property insurance covers the physical assets of the business, such as buildings, equipment, and inventory. It also covers business interruption, which covers lost income if the business needs to temporarily close due to a covered event.

Workers Compensation Insurance

Workers compensation insurance covers medical expenses and lost wages for employees who are injured or become ill due to their job. This insurance is typically required by law for businesses with employees.

Professional Liability Insurance

Professional liability insurance covers claims of negligence or malpractice. It is typically required for businesses in professional industries, such as accountants, lawyers, and consultants.

Conclusion

Small business insurance is an important part of protecting a business from potential risks and liabilities. The type of insurance needed depends on the industry and the size of the business. It is important to research and compare insurance policies to ensure the business is adequately protected.