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7 Types of Insurance Every Small Business Needs to Have

Published on June 21, 2015 2:11 PM EST

If you own your own business, you may be slightly flummoxed by the number of different insurance policies available for you to purchase. Which one should you choose? Do you really need all of them? Here are some of the most common insurance policies and a short introduction to each of them so you know exactly where you stand.

Public Liability Insurance


This is one of the most important insurance policies you will need as a business owner. If you have a shop floor or a place where customers can visit, you need to make sure that you have this insurance policy as it protects you in the event a customer is injured on your property. You might need it even if you work from home as visiting customers or clients could unfortunately still injure themselves.

Employers’ Liability Insurance

As soon as you take on employees, you need to look for employers’ liability insurance. It is a fantastic little policy which protects you when employees are either sick or have an accident while working for you. Furthermore, having employers’ liability insurance can be compulsory for most businesses so make sure you check to see if you need it.

Product Liability Insurance

If you in any way produce a tangible product which can be purchased, you need to get some product liability insurance. This is not the same as warranty cover or a guarantee but it protects you in the event that a product which has been manufactured or supplied by you has caused damage to either its owner or its owners’ property.

Professional Indemnity Insurance

Businesses which offer some form of advice or service need to have professional indemnity insurance to protect them in the event that their client is injured or financially incapacitated due to the advice. It is required in the US that doctors and other medical practitioners get some form of professional indemnity insurance but personal trainers and architects are some of the other professionals who should consider it.

Business Interruption Insurance

Sometimes accidents happen. A pipe could burst in the building or you could be hit with a severe weather warning which forces you to close and evacuate. So you do not miss out on any revenue at this time, you should consider taking out business interruption insurance.

Vehicle Insurance

Got any vehicles? If you own a business with cars or vans, you are going to need specific commercial vehicle insurance. This not only protects your employees and drivers, it also protects your business from claims in the event of third party injury.

Don’t forget to also read our collection of inspirational safety quotes on staying safer on the road when driving.

Industry-Specific Insurance

There are some industries which will require other types of insurance and you should look into them to see if they apply to you. For example, a roofer might require construction insurance while a massage therapist probably won’t. Take a good look at your business and your current insurance policies and try to work out where you need a little more protection.

Chances are, there will be a policy out there which suits your needs perfectly.

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