If you own a small business, you absolutely must get business insurance. Businesses often begin with commercial auto insurance, business owner policies (BOPs), and similar policies, but they may not provide all of the coverage you need. Luckily, there are a wide range of possibilities when it comes to specialty business insurance. We present five distinct kinds of business insurance below.
Security for Your Data
In the event that your company’s possession of personally identifiable information (PII) is compromised or lost, data breach insurance, which is also known as cyber liability insurance, provides protection. The most common types of cybercrime covered are hacks and other forms of theft or loss, as well as damage caused by viruses. Insurance policies vary, but some may also cover data leaks that result in the unintentional disclosure of personally identifiable information.
Data breach insurance coverage may financially support quickly notifying impacted individuals or organizations, offering credit monitoring to those affected, and working to repair your company’s reputation. Given that the average cost of managing a data breach in the US is $9.44 million, it’s a wise form of protection to implement if your organization deals with personally identifiable information.
Risk Coverage
With hazard insurance, you can protect your business’s physical location and any required machinery. If an incident like a fire damages the building, the coverage will help with the repair expenses. The policy also covers expenses for repairs or replacement of equipment during a qualifying event.
Hazard insurance can also cover rented properties in addition to those owned by the business. Therefore, any damage to the rented property that occurs during a qualifying incident will not require you to make any out-of-pocket repairs.
Insurance for Products’ Liability
Product liability insurance may be an essential safety net for businesses that make consumer goods. It will provide financial support in the event that your product injures a third party or leads to a lawsuit against your firm.
A consumer may file a lawsuit against your company if, for example, your product breaks easily during regular use, causing them bodily harm. If you have product liability insurance, you won’t have to worry about paying for any unexpected costs as you negotiate this potentially difficult issue.
Expense Coverage for Businesses
In the event that you are unexpectedly unable to run your business due to a disability, business overhead insurance (also known as business expense insurance) will cover all of the associated costs. It adequately covers items such as payroll costs and energy bills. Be aware, nevertheless, that it does not provide a wage to you, the proprietor.
Important people have personal insurance
In the event of the insured’s untimely demise, key person insurance might help to compensate for financial losses. A key person is typically a high-ranking executive or other influential person in the company who has a significant impact on the bottom line. The main difference is that the beneficiary is the employer, not a family member, as is the case with many other death benefits, such as life insurance.
