Starting your own business brings plenty of new tasks, many of which new business owners are unfamiliar with, like selecting the right insurance. Business Insurance coverage is an important protection business owner should always carry. Without the proper coverage, an accident that occurs on your property or property damage due to weather or other unforeseen acts of nature, can have a devastating effect on your bottom line. Here are some suggestions on the types of insurance you should consider and why:

Liability insurance

Small businesses generally carry two forms of liability insurance: General and Professional. General Liability Insurance covers the claims that could occur if there is property damage or bodily injury due to an accident on your property. Most common claims involve slips and falls that result in some type of injury to a client or customer. On the other hand, Professional Liability Insurance (also known as Errors and Omissions Insurance) is needed for any errors or omissions your business makes that affects a client. This insurance covers the actions of you, the business owner, as well as clerical staff.

Property Insurance

Just like a homeowner, you need to protect the physical assets and property that are part of your business. Property Insurance offers protection against fire, vandalism, theft as well as the equipment on your property, including tools, computers, and other hardware necessary for the operation of your business.

Workers Compensation

As a business owner, you are now responsible for the wages and benefits of your staff. Worker’s Compensation is an insurance policy that basically covers employees who become injured while working. Worker’s Comp covers employee’s wages and medical benefits while they cannot work. The penalties to business owners who do not carry Worker’s Comp insurance are significant and owners who are not covered are liable for many legal complications and fees.

Commercial Auto Insurance

You should carry Commercial Auto Insurance as a business owner to cover cars, SUV’s, trucks, and vans from expenses related to damages that occur due to accidents and collisions. Even if your employees drive their own cars on behalf of your business, you should consider purchasing non-owned auto liability. This coverage will protect your company if the employee does not have car insurance or does not carry adequate insurance and is involved in an accident while driving on behalf of the company.

Home Business Insurance

If you are starting a business from your home, chances are your homeowner’s insurance will not provide adequate coverage for the equipment, inventory, and other business-related expenses for your company. Let your provider know that you have a home-based business to guarantee you have adequate coverage in case of theft, loss, a fire, or other event that could damage your business-related products.

Choosing the Package Deal

For many small business owners, it makes more economical sense to purchase a comprehensive Small Business Owners Policy (BOP). Purchasing each necessary insurance policy can be more costly than a packaged policy. Most often, BOP’s include General Liability, Property Insurance and Business Income Insurance and offer a better overall rate than individual policies purchased separately. Depending on your business, you can work with your insurance provider to create a BOP packaged directly to your needs.