Insurance for small businesses, types of policies and who needs it.!
Every single professional needs GL coverage
About general liability (GL) policies
General Liability is the most common form of insurance for small businesses, as every single professional is required to have some form of general liability coverage.
SCDS insurance services offers both standard, year-long policies for small businesses, as well as flexible duration, project-based coverage through our partners.
Why do you need it?
General liability insurance protects you and your small business against another person or business’s claims of bodily injury or property damage. GL can help pay for medical expenses and attorney fees that you are legally responsible for.
Consider this: a customer comes by your office and trips injuring themselves. If that customer decides to sue you, your GL coverage will step in to pay for the damages. Your GL coverage does NOT pay for injury to yourself or your employees. Liability always pays for “the other guy.”
About business owners policies (BOP)
A Business Owners Policy (BOP) is more versatile and protects both a small business owner’s business and property all in one package (typically combining General Liability and Property Insurance). This type of insurance for small businesses can reimburse the policyholder for damaged personal property.
Why do you need it?
A GL policy does NOT protect you from your OWN property. This is one of the main reasons why you would need to consider a BOP.
Most companies mistakenly believe that if they have General Liability insurance, their own losses are covered along with the losses or accidental harm of their customers. However, this is not the case.
For example, a BOP would cover if a customer trips on an uneven front step, if an employee accidentally harms a customer’s property, if a product accidentally harms a client, if a break-in happens at the business owner’s property and equipment is stolen, and the list goes on.
About professional liability (MPL) policies (aka E&O policies)
Professional Liability (MPL), also known as Errors and Omissions, is a type of liability insurance that covers your small business for failure to uphold contractual promises in mostly service-based professions.
Why do you need it?
Professional Liability is the insurance for small businesses that insures the work that you do and the advice that you give. If your work is incomplete, inadequate, or not delivered on time and a client sues you, MPL will cover the cost of the lawsuit and any damages that are awarded.
For example, attorneys, accountants, architects, engineers, designers, photographers, financial advisers, real estate agents, and other such professions usually need some form of PL insurance.
What is cyber insurance for small businesses?
Cyber insurance helps small businesses recover from cyber threats, making it easier to bounce back and continue operations.
A cyber insurance policy typically covers
Data Breaches: If customer or employee information (like names, addresses, or credit card numbers) is stolen, the policy can help cover the costs of notifying those affected, offering credit monitoring, and legal expenses.
Cyberattacks: If a hacker breaks into your systems and causes damage, the policy might cover the cost of restoring your data and systems and any loss of income if your business is interrupted.
Ransomware: If a hacker locks your data and demands a ransom, this policy might cover the ransom payment and the cost of getting your data back.
What is workplace violence insurance coverage for small businesses?
Workplace Violence insurance coverage helps small businesses recover from a violent event. Covering a broad range of incidents, this coverage goes beyond typical General Liability and Workers’ Compensation coverage.
While that’s good, it’s not near enough to cover the realities of these events. Coterie’s Workplace Violence coverage, in partnership with Berkley Re Solutions, also offers small businesses with needed help with education and risk management when an event happens.
Key Workplace Violence coverages include:
Business Interruption
Crisis Management Expert
Public Relations Consultant
Mental Health Counselling
Site Security Services
Bio-Hazard Clean-up Expenses
Burial Expenses
Reward Expenses
Temporary Expenses: Location & Employees
Travel Expenses
Business & commercial auto insurance
Business auto insurance, also known as commercial auto insurance, covers vehicles used for business purposes. This type of policy protects a company from financial losses resulting from claims of property damage or bodily injury caused by a business vehicle. Commercial auto insurance is necessary for vehicles owned by a business, and sometimes even for employee-owned vehicles used for work. A personal auto policy almost always contains an exclusion for business use, which means it will not provide coverage in the event of a work-related accident.
Who needs commercial auto insurance?
Contractors and tradespeople, such as plumbers, electricians, painters, or landscapers, who use trucks or vans to transport tools and equipment.
Delivery and food service companies that use vehicles to transport goods.
Transportation and livery services, including taxis, shuttles, and limousines.
Nonprofit organizations that use vehicles to transport volunteers or clients.
Sales and marketing professionals who drive frequently for work.
Any business that owns, rents, or leases vehicles used for work purposes.
👉 Get a free insurance quote today and find out how cheap peace of mind can be.
