4 Types of Small Business Insurance You Should Know About

While the original business insurance policies were designed to protect business owners against natural disasters like fires and floods, contemporary policies have expanded to cover a much broader range of  catastrophes. From simple data input mistakes to all-out cyberattacks, the modern business has a wide variety of bases to cover. So, as a business owner, how do you know that your policy is doing what you need it to?

To answer that question, there are many types of insurance coverage for small businesses that work against a wide range of threats. Here are four of the most common types of business insurance you’ll hear about:

General Liability Insurance. This basic insurance coverage protects the company against any legal action taken after a person or their property are damaged on premises. For example, if you own a small boutique market and someone slips on a puddle of juice spilled in the aisle, general liability insurance protects you from any lawsuits. Generally, if you’re renting your office or location, your landlord will require some form of general liability policy.

Business Owner Policy Insurance. Business owner policy, or BOP insurance, helps to secure the property and equipment used by your business. This covers the contents of your office–laptops, servers, and so on–against theft and damage from accidents and fire. Many insurance companies make package deals that combine general liability and BOP insurance to help you save money.

Errors and Omissions Insurance. This type of insurance, also known as professional liability insurance, helps protect the company against any mistakes within their professional services. For example, if you and a client enter into a contract and the client claims that the final product or service does not meet the expectations you promised it would, errors and omissions insurance can protect you from any ensuing lawsuits.