Here’s what you need to know about small business insurance.
As a business owner, you’re likely to have a Business Owner’s Policy (BOP) in place. You will know that this can protect your business’s property and assets. From slips, falls, fire, and theft, this policy can cover a vast range of risks that threaten your business daily. Even so, that’s just some of the coverage that you can receive! Small business insurance is rarely understood by start-up companies and those that believe they have little risk to contend with. As a result, many small businesses buy too little or not the right insurance.
These three lesser-known small business insurance coverages can protect you from the inside out.
Product Liability Protection
Do you make a physical product? Whether it’s books, shoes, toys or cakes, your business is liable for physical harm should products injure or cause damage to others. Liability complaints may arise from:
- Manufacturing or production flaws
- Design defect
- Defective warning or instruction
If you’re sued over an injury or property damage claim that your products caused, General Liability Insurance with Product Liability can help to protect your business from paying for steep legal defenses.
Note that you may have Business Interruption Insurance within your BOP. Such coverage steps in to help when a fire or another covered peril forces your business to temporarily close its doors. Coverage helps to cover loan payments, employee wages, rent, and more. It provides financial help when your business needs to recover quickly after a disaster.
Even small businesses are at risk of cyber threats, scams, and more. This policy comes in two types:
- First-party response coverage: This helps to pay for forensic investigators, notifying the affected customers, PR services, and crisis management after a breach.
- Third-party defense coverage: This helps to cover legal costs if your business is sued over allowing a data breach to occur.
Small business owners, don’t let your business fall vulnerable to risks. Start updating your business today with the right business insurance and limits of coverage. Visit Nahai Insurance Services to get started today!