Business Insurance

A business insurance policy protects businesses from property damage, legal liability, and employee-related risks that can occur during normal business operations. 

Without a policy, you could have to pay out of your own pocket for any damages and legal claims against your business. This is especially true for small business owners who may have lots more personal financial exposure in this instance.

Business insurance in Leonard, Michigan

Types of business insurance

There are a few types of business insurance that offer different coverage you may need:

General liability — protects your business from being sued for injuring another party or damage to someone else’s property.

Professional liability — this insurance against negligence claims that come from a mistake or failure to perform. What this specifically covers will depend on your industry.

Property insurance — covers physical assets like your building, its contents, and even fences and signage outside in case of explosions, fire, storms, theft, pipe bursts, and vandalism. You’ll need a separate policy if you feel like you are at a high risk of something like an earthquake or flood, however. 

Home-based business — your homeowners insurance will not cover your home-based business. In fact, your business activities could void your home insurance. Essentially, this type of policy can include any kind of blend of the rest of these types of business insurance that you need, but designate that your business is operated from your home as to not void your homeowners insurance. 

Product liability — if you manufacture a physical product to sell, this protects you from lawsuits due to product failure or malfunction. 

Vehicle insurance — essentially auto insurance, but for company vehicles.

Business interruption — if your business operations are forced to stop, this compensates for lost income.

Workers’ compensation — if you have employees, you’re likely aware that you need coverage to compensate your employees should they become unable to work after suffering a work-related injury or if they decide to sue your business.

Data breach insurance — this helps cover the costs, find the source, mitigate damage, and provides money for public relations if your company suffers a cyber attack.

This Policy Would Be Useful For:

  • Restaurants
  • Auto repair shop
  • Collision/auto body shop
  • Lessons risk
  • Manufacturers
  • Fitness gyms
  • Barbers/ hair salons
  • Used car dealership

Do I need business insurance?

If you’re still unsure whether your business is large enough or has enough risk to really consider paying for a policy, here are some things to consider: 

  • If you have employees, you need business insurance
  • If your business has any property that you could not easily afford to replace, you need business insurance

There are also many liability concerns in which you would need a policy like: 

  • You have customers on your property 
  • Your company has a large online presence subject to data breach
  • You manufacture, distribute, or sell products
  • You write about people or businesses and are subject to slander laws

If any of these apply to you, your business has enough risk to warrant a policy.

Barnhart Insurance in Leonard, Michigan

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