As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Written By Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Lead Editor, Insurance Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
Les Masterson Deputy Editor, InsuranceLes Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before cove.
| Deputy Editor, Insurance
Updated: May 30, 2024, 1:08pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Getty
Starting a new business is an exciting time and you’ll want to choose the best types of small business insurance policies to keep your company safe from the potential costs of claims, damages and lawsuits. Here’s a roundup of important small business insurance policies.
FEATURED PARTNER OFFERTailored policies for thousands of professions
A.M. Best financial strength rating
On Nextinsurance.com's WebsiteTailored policies for thousands of professions
Here are the types of insurance a small business may consider:
General liability insurance protects a small business from claims of property damage and bodily injury. As a small business owner, you may be legally responsible if a person’s property gets damaged while visiting your business, company or store. And if your business is responsible for someone’s injuries (not including an employee’s injuries), general liability insurance would pay for their medical bills and lost wages too.
Other claims handled by general liability insurance include reputational harm, advertising injury and copyright infringement.
With the help of a business liability insurance policy, your small business will be able to maintain financial stability if you should get sued by a customer or other business. A general liability policy also pays for your legal costs, along with settlements and judgments.
Financial lenders, landlords, licensing boards and business clients often require general liability insurance before doing business. So there are many reasons to put commercial general liability insurance at the top of your insurance to-do list. A general liability insurance certificate will show that you’re properly insured.
A general liability insurance policy costs an average of $42 per month, according to Insureon.
A commercial property insurance policy protects the physical location of your small business and your business equipment, computers and office furniture. Owned and leased business equipment are both covered by this policy.
It takes a lot to make a small business go and there is a lot covered with a commercial property insurance policy. Tools, inventory, supplies, valuable papers and business records are all covered. Commercial property insurance also covers outdoor fixtures such as signs and fences.
A commercial property insurance policy typically applies to any loss to your small business property due to perils such as lightning, wind, hail and fire. Commercial property insurance also covers theft and acts of vandalism.
A commercial property insurance policy has a median cost of $63 per month, according to Insureon.
A business interruption insurance policy replaces lost income from a small business if you need to temporarily shut down due to a loss covered by the policy, such as a lightning strike or a fire. Other perils covered by business interruption insurance include theft, wind and falling objects.
If any of these problems strike your small business, business interruption insurance pays for money lost because of damaged merchandise, lost earnings and additional expenses such as having to move the business to a new location on a temporary basis.
This is also called business income insurance.
Business interruption insurance costs between $40 and $130 a month, according to Insureon.
A business owners policy (BOP) bundles general liability insurance, commercial property insurance and business interruption insurance together. It’s an affordable way to buy small business insurance. Buying the policies separately will mean higher prices.
Just how affordable is a BOP? It costs an average of $53 per month, according to Insureon.
Companies with 100 employees or fewer and revenues of up to about $5 million are good candidates for a BOP, according to the Insurance Information Institute.
Commercial auto insurance is needed for the cars, trucks and vans used for your small business.
A personal auto insurance policy typically excludes any business uses of a vehicle. That’s why it’s so important to get a commercial auto insurance policy if you have a company car, truck or van that you use for business purposes.
If you fail to get business auto insurance for work vehicles, any claims you make could be denied. You would end up paying for any accident and other damage all on your own, which could get very expensive.
Commercial auto insurance costs a median of $142 per month, according to Insureon.
Hired and non-owned auto liability insurance provides liability coverage should employees rent or use their personal cars for business purposes.
Because any driving you do for business won’t be covered by a personal insurance policy, it is essential to buy a hired non-owned auto liability insurance if you’re renting a car for work or driving your own car for work purposes. Doing so will give you the insurance coverage that you need and save you from a hefty insurance claim should you be at fault in an accident while driving for business.
A cyber liability insurance policy helps with the costs of cyberattacks and data breaches. Let’s say some private customer information gets leaked from your company’s database. If the customer files a claim against your company, cyber liability insurance will help pay for the costs. Cyber liability insurance also will help pay for things such as notifying customers impacted by a data breach and offering them free credit monitoring.
The median cost of cyber liability insurance is $140 per month for small businesses, according to Insureon.
Was this article helpful?
