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What insurance policies do small businesses need?
Small businesses need various insurance policies to protect their investment. Some essential policies include general liability insurance, property insurance, professional liability insurance, workers’ compensation insurance, and business interruption insurance.
What does general liability insurance cover?
General liability insurance covers claims related to third-party bodily injury, property damage, and advertising injury. It helps protect small businesses from financial losses resulting from lawsuits, medical expenses, and property repairs.
Why is property insurance important for small businesses?
Property insurance provides coverage for physical assets such as buildings, equipment, inventory, and furniture. It helps protect small businesses from losses due to theft, fire, vandalism, and other covered perils.
What is professional liability insurance?
Professional liability insurance, also known as errors and omissions insurance, covers professionals against claims of negligence, errors, or omissions in their professional services. It is crucial for small businesses that provide advice or services to clients.
Why do small businesses need workers’ compensation insurance?
Workers’ compensation insurance is required in most states and provides coverage for medical expenses and lost wages for employees who are injured or become ill on the job. It helps protect small businesses from potential lawsuits and financial burdens.
What is business interruption insurance?
Business interruption insurance helps small businesses recover lost income and cover ongoing expenses in the event of a covered incident that disrupts normal operations. It can provide financial support during periods of closure or when repairs are needed due to a covered event.
