Don’t Under-insure Your Business – 9 Types Of Policies You May Need

Insurance Policies You May Need

As a business owner, it’s very important that you protect your personal assets against any losses which may be sustained by your business entity, and that’s what happens in a limited liability corporation (LLC). But just establishing the right type of business is not enough to fully protect you from the uncertainties of the small business world, so there are some other kinds of insurance which you should investigate. Below are listed nine kinds of insurance that may help protect you from the ups and downs of business life, and give you a better chance for sustained success.

1. Workers’ Disability

This kind of insurance is just what it sounds like, and is intended to cover the possibility of extended illnesses or any specific events which may happen to your employees and prevent them from immediately returning to work. Whether or not you need to contribute to this kind of insurance policy will depend on which state your LLC has been set up in.

2. Interruption of Business

This could be an important safeguard for you in the event that you are unable to make money at your business for any amount of time following some kind of unexpected disaster. Business interruption insurance is usually an add-on rider to your property coverage policy, and it would compensate you if you are unable to conduct business for any amount of time following a disaster which caused property damage.

3. ‘Key Man’ Coverage

There may be certain individuals who are absolutely critical to the day-to-day operation of your LLC, and this kind of insurance policy protects you against losses which might be incurred if that key man is unable to work for any reason.

4. Workmen’s Compensation

This kind of insurance protects you against illnesses or injuries that may occur to your employees while on the job. Almost all LLC’s are required to have this kind of coverage, since it is uniformly mandatory in this country.

5. Unemployment Insurance

It is more than likely that your LLC will have to regularly contribute to a federal or state unemployment insurance program. This program compensates employees who are out of work for a reason which is beyond their control. Each individual state manages its own unemployment insurance program, although federal guidelines must be observed.

6. Business Property Coverage

If your LLC conducts business on real estate which it owns, then you will need business property insurance to protect you from any kind of damage caused by vandalism, fire, or natural disasters. When purchasing business property insurance, make sure to understand the types of damage which are covered, and exactly which elements of the property are protected.

7. Product Liability

If your LLC manufactures products, and one of these products causes harm to a purchaser, this could result in some kind of liability to your business. Product liability insurance will protect you against lawsuits of this nature brought against your company.

8. Errors and Omissions Coverage

If your LLC provides services to consumers, you could be held liable if some kind of error results in a customer experiencing a loss of some sort. One of the most common types of errors and omissions insurance is malpractice coverage in the medical field.

9. General Liability Coverage

This kind of insurance coverage protects your LLC from incurring losses if anyone becomes injured while on your premises. Typically this coverage includes legal expenses, medical costs, settlements, and legal restitution. The amount of your general liability insurance you need will generally depend on the degree of risk you face daily, as well as the kind of business you’re in.


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