Insurance 101: Different Types of Commercial Insurance for Small Businesses

​Once an entrepreneur starts a business, he exposes himself to risks. Having the proper commercial insurance coverage is essential for small companies to protect their hard-earned money, business, employees, and property. Fortunately, businesses have access to an extensive range of insurance types to protect them against dangers.

Types of Commercial Insurance for Small Businesses
Some business insurance types help protect the company’s reputation and well-being, while some protect the financial aspects. Commercial insurance is different from personal insurance because the former covers multiple stakeholders and has more coverage limits. 
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1. Professional Liability Insurance
   Professional Liability Insurance, also known as errors and omissions insurance. It protects the business against claims of negligence due to harm caused by mistakes or failure to perform. However, no policy fits all companies. Every industry has its unique set of matters that need to be addressed in a customized coverage for a business.
   
   
2. Property insurance
   Commercial property insurance helps in covering your building and its items, as well as any resulting financial loss to your business. It is only applicable if there is a fire, theft, or a natural disaster. However, events like earthquakes and floods are not covered under standard property insurance policies. Ask your insurer in case you are in a high-risk area. 
   
   
3. Worker’s Compensation Insurance
   If the business requires hiring employees, companies should add worker’s compensation to the business insurance policy. This coverage includes medical treatment, disability, and death benefits if an employee is injured because of his business work. Without a worker’s compensation policy, damages for injuries can range up to thousands of dollars and into millions. 
   
   
4. Product Liability Insurance
   This coverage is for manufacturing businesses that have products on sale in the general market. Business owners can find themselves entangled in lawsuits brought by damages caused by one of their products. Getting product liability insurance helps protect a business in these times, with coverages available to be customized depending on the business’ needs.
   
   
5. Cyber Liability Insurance
   Small businesses are often the target for identity thieves because they commonly have less security than prominent companies. Getting cyber liability insurance is essential because it provides coverage for losses incurred due to data breaches. Data breaches are a massive problem because customer data can be stolen. These include important info like credit card numbers, addresses, health records, and the like. 

At UG Insurance Brokerage Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (718) 848-7777 or Click Here to request a free quote.