While there may seem like many large businesses located in the US it is the small businesses that actually comprise the backbone of the economy. They employ the most individuals and play the biggest roles in their respective communities. As such, small businesses need insurance coverage that will help keep their company safe from risks that could possibly damage their finances. With all that goes into running a small business however owners need to be able to know what sort of business insurance options are available and which fit their very personalized needs.

Almost every state you will visit requires businesses to carry some sort of workers compensation insurance. This type of insurance helps to pay for an employee’s lost wages and medical treatments in the event of a work related illness or injury. Employment practices liability can go hand in hand with workers compensation insurance. This type of insurance helps to cover the employer. A business owner’s legal defense fees will typically be covered by this insurance in the event that an employee sues for discrimination, wrongful termination, or harassment.

Professional liability insurance is another type that your business may or may not require. You may also hear this type of insurance referred to as errors & omissions or E&O insurance. The coverage available can vary depending on your particular profession; however, coverage is typically offered in $1 million increments. This insurance helps to cover you in the event of faulty service or a mistake. Real estate, financial service, insurance agents, and accountants typically carry this type of insurance in the event that they offer poor advice or make an error that causes clients harm. Medical professionals typically carry this form of insurance, but it is referred to as medical malpractice.

There are many small business owners who will never have to worry about being high risk or facing huge lawsuits. In these cases a business owner policy can typically cover the needs. This particular policy is made of two separate policies that work together – property insurance and commercial general liability. Property insurance covers a business’s assets such as its inventory, buildings, equipment and other such items. Commercial general liability helps to cover a business in the event that someone brings a bodily injury or property damage claim against it. Some policies will even include business income insurance which can cover business expenses and loss of income if a business has to close due to repairs from a covered type of property damage.

One last type of insurance is sometimes referred to as umbrella policies or excess liability. These provide protection above and beyond any policy limits set by a business owner policy. Typically available in $1 – $5 million limits, this type of insurance is purchased by businesses with a high level of assets or those that are deemed high risk.

While it may seem so, small business insurance doesn’t have to be overwhelming. Contact us today for more information on how you can get the small business insurance coverage you need and deserve and a price that won’t leave you with sticker shock.