4 types of insurance coverage you’ll need for your small business

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By Hannah Whittenly

You’ve started your own business – now what? You’re planning to work on your venture full-time and need a way to cover some costs. One type of coverage that can help you is small business insurance. Here are 4 types of small business insurance coverage you’ll need:

1) General liability insurance

This type of insurance will cover your assets if you and your employees are sued for any claim. General liability includes things like libel, slander, intentional and unintentional injury, property damage and much more. It encompasses multiple types of insurance, including business interruption, bodily injury and property damage. It covers the person you sue and not necessarily the company.

2) Business owner’s policy (BOP)

Also called an owner’s policy, this is one of the main reasons for small business insurance. For you to be able to sell your product or service, you need a way to pay back the clients and buyers. A BOP provides coverage in lawsuits involving your business assets and your company’s customers. It also covers theft, vandalism and other loss issues. This policy covers your buildings in the event of a fire. It will cover your income if your business has to close temporarily because of a covered loss.

3) Public liability insurance

Public liability is often referred to as PL or PI. This insurance policy will cover any claims made by an individual that is not directly related to your products or service but your property. This includes areas of the building, outdoor areas and outdoor property such as parking lots. It will cover people injured on your property and their medical expenses. This can include loss and damages to their clothing, jewelry, vehicle or other personal items. Public liability insurance will also provide legal representation in court if a suit is filed against you.

4) Business income coverage

Business income insurance will cover your losses due to a covered event. It is often referred to as BIC or BI. This can include property damage, loss of inventory and even vandalism. If you have an interruption in the service of your company or if you have to close for repairs, this type of insurance will help to replace your income. It will also cover you if you have to pay for work done on your building or home because it was damaged by a covered loss such as vandalism or fire.


It is wise to take the time to investigate the different types of insurance coverage for your business. Insurance can help you out in many ways, and you could lose everything if you don’t have it. It’s also important for you to be familiar with the ins and outs of each policy and contract so that there are no surprises down the road.


Hannah Whittenly is a freelance writer from Sacramento, California. A mother of 2, Hannah enjoys writing on blogs of all niches.



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