Small Business Insurance

In addition to these policies that many small businesses need, there are also a number of more specialized coverages that certain small businesses may need. A few specialized policies that small businesses might want include:

• Pollution Coverage, which may cover pool service companies if they spill chemicals, for example
• Contractors and Builders Risk Coverage, which might cover a general contractor or home builder if they make an error in a construction project
• Liquor Liability Coverage, which most businesses that serve alcohol need

What Protections Does Small Business Liability Insurance Offer?

Small business liability insurance generally provides protection against covered liability lawsuits for covered incidents. Exactly what incidents a policy covers can vary, but most small business liability insurance policies cover slander and libel claims, and injuries that people sustain while on a business’ property. These kinds of incidents can happen to any business, regardless of what industry it’s in, which is why many small businesses get this coverage.

If a business is charged in a covered lawsuit, small business liability insurance will typically cover both legal fees and settlements associated with the suit (up to the insurance policy’s limit). Moreover, coverage usually is effective as soon as a covered liability suit is filed against a business. Businesses don’t normally have to wait until they’re found responsible in court to begin getting benefits.

What Are Business Owners Policies and Commercial Package Policies?

Business owners policies (BOPs) and commercial package policies (CPPs) are two forms of package insurance policies that may be appropriate for small businesses. As package policies, BOPs and CPPs bundle together several individual small business insurance policies. The policies in BOPs tend to be more basic, while CPPs frequently provide more advanced and specific coverages. Depending on a small business’ risk exposure, either may be appropriate.

How Can Small Businesses Get Insurance?

Because there are many considerations to take into account when selecting small business insurance policies, small businesses that need insurance should get in touch with an independent commercial insurance agent. An agent should have the expertise necessary to assess the risks that a particular small business faces, and they’ll be able to recommend coverages that will protect the business against those risks. They’ll then be able to get quotes from insurers for policies that provide the coverages a business wants and help the business select the best policies available.