Types of Small Business Insurance

What Is Small Business Insurance?

Small business insurance is designed to help protect businesses. It could provide financial and legal protection for a business if an incident occurs involving business owners, employees, customers, or business property.

The type of insurance coverage that your business needs can depend on several factors, including the industry you work in and what kinds of assets you might need to protect. From a Business Owners Policy to a Workers’ Compensation policy for employee injuries and illness, there is something for almost every small business.

Why Do I Need Small Business Insurance?

Without small business insurance, you could be at a greater risk of the effects of being sued. No matter how careful you are, accidents can happen. If something goes wrong with a project, product or process, your employees or customers could file a claim. Small business insurance could cover the cost to defend your company and yourself for business related lawsuits.

Small business insurance could also protect the business against a variety of situations including employee injuries, third-party injuries, and property damage. Associated medical costs for injury related claims may be included as well as the cost to repair or replace business equipment caused by a covered loss.

By getting insurance for your small business, you are purchasing protection. This protection will be there for you if something bad happens to the business. Want more information about insurance? Read our article about reasons every small business need insurance.

What Are The Types of Small Business Insurance?

Every business has different needs when it comes to insurance. Depending on your business you may have specific risks which is why there are several types of small business insurance. Each type of small business insurance addresses different risks.

If the business would not be able to pay for an incident related to a risk on its own, then it may be worth purchasing insurance to help protect the business against that particular risk.

Some of the most important small business coverages are general liability insurance, commercial property insurance, cyber insurance, and Workers’ Compensation insurance.

PolicySweet offers a few types of small business insurance policies, including:

Business Owners Policy

1 - Coverages - HomeHQ Section

Business Owners Policy (BOP) combines multiple types of business insurance together into a single policy. It can save you time and money from purchasing each coverage separately. BOP coverage from PolicySweet includes three types of business insurance that may make it easier for you to protect your business, it includes:


Workers’ Compensation Insurance

1 - Coverages - Workers Comp

Workers’ Compensation insurance may help provide benefits to employees if they have a work-related injury or illness. It is legally required in many states for businesses with employees. This type of small business policy can help cover medical care and lost wages if an employee is injured while on the job.


Home-Based Business Coverage


If you operate a business out of your home, you may want to consider a home-based business insurance policy like HomeHQ. HomeHQ could provide coverage for business liabilities that a homeowner’s or renter’s policy does not typically cover. This insurance policy combines business liability, business property, and business inventory coverages for the convenience and effectiveness that home-based businesses might need.


How Can You Choose the Right Coverage?

Choosing the right insurance policy can seem overwhelming with so many different types available, but there are a few things to keep in mind that make the decision easier. Small business insurance is meant to fill gaps to help ensure that your assets are protected from unexpected scenarios, so you might want to determine what kinds of business assets you may need to cover and what level of protection you are likely to need. Businesses that are run out of your home might require different coverage than ones that have a retail location.

Once you assess your risks, you can determine which policy can cover your needs. Our experienced team of business insurance experts can answer your questions and help guide you to the ideal policy for your circumstances.

Even if you already have an insurance policy, you may need to add additional coverage. It is important to regularly evaluate whether your current coverage is adequate for your business and to adjust, when necessary, since potential liabilities can change as your business grows.

Some states require specific types of small business insurance, so remember to look into local laws and regulations to maintain compliance.

PolicySweet strives to make it easy to find small business insurance with three simple steps. Find the appropriate coverage for your business when you reach out today for an instant quote.

What Businesses Do We Cover?

PolicySweet insures several types of businesses, including:

Need Help Determining What Type Of Coverage You Need?

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Does PolicySweet Offer Small Business Insurance In My State?

PolicySweet provides small business insurance in several states. To learn more about coverage in your state, visit our insurance by state page.


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