Why Small Businesses Need Insurance and Common Types of Coverage

I am asked from time-to-time why small business owners need insurance. Every business is unique and will have its own specific needs, but in this blog post, I’ll address some of the most common reasons small business owners need insurance, and the most common coverages that should be considered.

1. Automobile coverage. It is important to review existing auto insurance policies to determine if they offer coverage for accidents that occur while carrying out business. If your business will have employees who will either use your vehicle or their own for company business, make sure that your policy covers that type of usage.
2. Commercial property coverage. Even if you do not own the building or space where your office is located, it is important to have coverage for unanticipated damages. This coverage is designed to both protect your assets and to protect the property landlord in the event you are responsible for damage to the building or your office suite. Most leases for office space will require proof of this type of insurance.
3. Liability coverage. Liability insurance can cover your products (if your business produces specific products), your professional services (important for attorneys, financial services professionals, medical professionals and others), or it can be “general liability” insurance, designed to provide protection for a variety of unforeseen claims.
4. Home-based business coverage. Your existing homeowner’s policy probably does not cover business use, but you may be able to add riders to your policy.
5. Workers Compensation. If you have employees, you most likely need to purchase workers’ compensation insurance, designed to help meet your obligation if an employee is injured on the job or becomes ill as a result of working for you.

While these five are the most common types of coverage small business owners need, there are many other policies available designed specifically for employers in various fields.

For more information about what coverages are recommended for your small business, contact us today.

Robert Macoviak( President )

Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.