10 Insurance Types Business Owners Should Consider

Insurance Insights | October 28, 2021

10 Insurance Types Business Owners Should Consider

Business meeting about insurance

Despite all the hard work that comes along with starting a new business, it can be fun and exciting! Being your own boss is always a nice feeling because you set the rules. Many entrepreneurs have a million things to worry about and insurance is usually the last thing you’re thinking about. But not having insurance can be detrimental and quite costly if things go sideways.

It’s important to know what type of insurance you should have when starting your own business to ensure that you’ve got your basis covered. We understand that not everyone is an insurance expert so we’ve compiled a list of the top 10 insurance types you should consider if you own your own business.

Insurance Types for Business Owners:

1. General Liability Insurance: Every business, even if home-based, needs to have liability insurance. The policy provides both defence and damages if you, your employees or your products or services cause or are alleged to have caused bodily injury or property damage to a third party.

2. Property Insurance: If you own your building or have business personal property, including office equipment, computers, inventory or tools you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc. You may also want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate.

3. Garage Auto Insurance: If you own an automobile repair shop, work with transport vehicles, valet, detailing or painting cars, auto glass installers, or a tow truck operator, auto garage insurance is recommended for you. This coverage protects you from any property damage or injuries that may occur on-site. The goal of obtaining this insurance is to give you peace of mind so that if things go wrong with the vehicles you’re working with, you’ve got the necessary coverage to handle those situations. 

4. Commercial Vehicle & Fleet Insurance: this insurance type protects a company’s vehicles. You can protect vehicles that carry employees, products or equipment. With commercial auto insurance, you can ensure your work cars, SUVs, vans and trucks from damage and collisions. If you do not have company vehicles, but employees drive their own cars on company business you should have non-owned auto liability to protect the company in case the employee does not have insurance or has inadequate coverage.  Many times the non-owned can be added to the BOP policy.

5. Bonding Insurance: Project managers, contractors, and builders in the construction industry should consider obtaining bonding insurance. Bonding insurance provides financial protection if the contractor fails to deliver on the expectations of the customer.

6. Errors & Omissions Insurance (E&O): this type of insurance is also known as professional liability insurance. The policy provides defence and damages for failure to or improperly rendering professional services. Your general liability policy does not provide this protection, so it is important to understand the difference. Professional liability insurance is applicable for any professional firm including lawyers, accountants, consultants, notaries, real estate agents, insurance agents, hair salons and technology providers to name a few.

7. Directors & Officers Liability Insurance: this type of insurance protects the directors and officers of a company against their actions that affect the profitability or operations of the company. If a director or officer of your company, as a direct result of their actions on the job, finds him or herself in a legal situation, this type of insurance can cover costs or damages lost as a result of a lawsuit.

8. Builders Risk Insurance: Homebuilders, renovators, and other tradespeople face unique risks in their businesses. There may be a fire, damage by vandalism, or unexpected accidents throughout construction. Builder’s risk insurance is designed to insure materials, fixtures and other equipment used in the renovation of a property should they be damaged.

9. Cyber Liability Insurance: You can be held liable for the incident besides having to take care of the recovery costs. In the event of a cyberattack, such as a ransomware attack or customer data breach, cyber liability insurance covers the costs associated with the cybercrime.

10. Legal Expense Insurance: Legal expenses insurance solutions are an important risk management tool for any business owner, as they provide affordable access to legal advice and representation. This is especially helpful when faced with the substantial cost of exercising your legal rights.

Final Thoughts

As you continue your invest more time, money, and effort into growing your business the challenges you’ll face to protect yourself and your business from the unexpected will increase. Mitigate risks by obtaining the proper insurance that you need to protect your company. We are here to support you when things don’t go according to plan.

Whether you have a small business, mid-size business, or a larger business our brokers are ready to help you find the right insurance policy for the needs of your business. With the proper insurance, you can get back to what you do best. Get in touch with us today.