At any given time, your business faces a myriad of risks.
An employee could get hurt on the job, requiring you to take care of the medical bills and other related expenses. A customer could slip and fall while in your business premises and before you know it, you’re slapped with a premises liability lawsuit. A cyber hacker can penetrate your website, making away with valuable and confidential data.
Risks, if not properly controlled, can adversely affect your business. Insuring your business is a smart risk management method.
Read on to learn the various types of business insurance your company might need.
1. Cybersecurity Insurance
Cybersecurity insurance isn’t the first thing that comes to mind when you’re shopping around for business insurance, but there are compelling reasons it should. About 50 percent of cyberattacks now target small businesses like yours.
If you have a business website, social media accounts, or utilize other digital systems and platforms in your business, you’re at risk of a cyberattack. A single attack can cripple your business within hours, and to recover from it, you’ll need about six months and some $200,000!
Cybersecurity insurance protects you from the financial losses your business might incur following a data breach. For example, if hackers expose confidential client information and your clients file a data breach suit, the insurance policy will help cover the compensation settlement.
Cyber liability insurance is now available even for specialty industries.
2. Business Interruption Insurance
Business interruption occurs when there’s an event that causes a business to cease or slowdown its day-to-day operations for a certain amount of time.
For example, if a hurricane hits your area and businesses are forced to close down till it’s safe to reopen, your business will suffer some economic losses. If you’re a brick-and-mortar store, closing down effectively means you won’t be making any sales.
Perhaps the COVID-19 pandemic is now the closest example of an event that causes a severe business interruption.
Purchasing business interruption insurance helps ensure your business receives compensation for the losses you’ll make. Some businesses can’t afford to stay shut for a long period of time, so this policy can be all it takes to keep the lights on in your business.
3. General Liability Insurance
After purchasing different types of business insurance, you might feel that you no longer need general liability insurance – which is the most common policy small business owners buy.
However, general liability insurance providers coverage in areas that no other policy might adequately provide. For instance, if someone successfully claims that your business caused them bodily injury, your general liability coverage will come in handy.
The best bit about this type of insurance is you can get good coverage at a small annual premium.
Don’t Fail to Purchase These Types of Business Insurance Policies
The insurance market is littered with several types of business insurance policies. You don’t need all of them, but there are those that you absolutely need. Cybersecurity insurance, business interruption insurance, and general liability insurance are must-haves.
Subscribe to our blog for more business advice.