What insurance do you need for a small business?  It's not a simple answer because the type of business insurance coverage that you need for your small business depends on what your company does and the state that you're in.  Some state laws require certain small business insurance policies and leave it up to you to have the right coverage.  That's why we at Ferguson Insurance Center can help you personalize your business plan and make sure that you have  the right amount of coverage.  We do not want for you to have to pay out of pocket for claims because of a lack of coverage.  Small business insurance is an important investment for protecting your company.

The most common types of insurance that small businesses need are:

• General Liability Insurance helps to protect your business from personal injury or property damage claims made by someone else.  For instance, if someone slips in your business, this coverage can help pay for any medical expenses. Many small business owners also add a Product Liability Insurance policy. This additional policy can help protect your business from bodily injury or property damage claims from damage that your products cause.

• Professional Liability Insurance helps to cover any claims related to any mistakes made in the professional services that are provided by your business. For instance, your CPA firm makes a mistake on a client's financial statement and your client has to pay a penalty. If that client sues your firm, your Professional liability insurance can help cover your legal costs. This coverage is aka E&O Insurance or Errors and omissions insurance.

• Commercial Property Insurance helps protect the building and the equipment you use to operate your business whether you own it or rent it. If someone breaks in your business and steals your business computers, your commercial property insurance policy can help cover the replacement costs.

• Business Income Coverage aka business interruption insurance, can help replace lost income should you not be able to run your business because of covered property damage. This would include damage from a storm, theft, or a fire. 

• Worker's Compensation Insurance helps to provide benefits to your employees should they have a work-related injury or illness. Most states require businesses to have this coverage if you have employees. For instance, if your employee develops carpal tunnel syndrome from years of typing and poor ergonomics, this insurance can help pay for their treatment costs. 

• Commercial Auto Insurance will cover any property damage or bodily injury claims if you or an employee gets into an accident while driving a company-owned vehicle for business. For instance, your employee hits a mailbox while making a delivery, this insurance can help pay for the damage.

• Data Breach Insurance, aka Cyber Liability Insurance helps your business respond to a breach if personally identifiable information gets lost or stolen. It can help cover your costs to: (1) Notify impacted clients or customers (2) Offer credit monitoring services (3) Run a PR campaign to improve your business' reputation.

• Employment Practices Liability Insurance, aka Employers' Liability Insurance helps protect your business from employment claims such as discrimination, wrongful termination, and sexual harassment.

• Commercial Umbrella Insurance extends the limits of certain liability policies that can help cover the difference if a claim exceeds your policy's limits. 

• Hazard Insurance or Small Business Hazard Insurance is another name for Commercial Property Insurance. It offers protection for owned or rented business property, like your building and equipment.

• Business Owner's Policy (BOP) is one of the most popular types of insurance. BOP combines General Liability, Commercial Property Insurance and Business Income Insurance.

Ferguson Insurance Center. . .  Insurance Made Simple. 

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