Best Small Business Insurance | The Motley Fool

Business interruption This small business insurance helps replace your business income in case your business is forced to shut down temporarily for a covered reason. Commercial auto Don’t count on a personal auto insurance policy to cover business risks. Commercial auto coverage is a type of small business insurance for business vehicles — and it usually includes coverage for liability and property damage, like other auto insurance. Commercial property Does your business own (or rent) physical property, like office space, facilities, furniture, or inventory? If so, commercial property insurance can protect you from losses due to fire, natural disaster, theft, and more. Cyber liability If your business is a victim of a cyber attack, hack, or ransomware attack, cyber liability insurance can help protect you from damages and cover costs of lawsuits, regulatory fines, and other aspects of recovering from the attack. Data breach Data breach insurance is a more narrow type of cyber insurance that helps protect companies that experience data breaches. This insurance is a good choice if your business collects, stores, sends and receives personally identifiable information (PII) or personal health information (PHI) about customers. General liability This is the No. 1 must-have small business insurance policy that most businesses need. General liability insurance protects you from a wide range of risks, like lawsuits against your business based on personal injury or damage to property. It also can cover damages related to libel, slander, or copyright infringement. Home based business If you have more than $2,500 of business equipment, inventory, or property at your home, you probably need home-based business insurance. Don’t assume that homeowners insurance will cover your small business losses in case of fire, theft, or natural disaster. Product liability This type of small business insurance covers damages and legal costs related to claims for defective products. If you sell a product at your retail store, e-commerce site, or manufacturing business that goes on to injure a customer or damage someone’s property, you could be liable. Product liability insurance is usually included with general liability insurance, but check your policy to be sure. Professional liability If you offer professional services and advice to clients, you probably need professional liability insurance. This coverage is also known as “errors and omissions insurance,” because it protects you from lawsuits and damages related to professional errors and mistakes. Architects, tech firms, financial advisors, and business consultants are just a few examples of small businesses that need professional liability insurance. Workers’ comp As soon as your business hires its first employee, you need to check your state’s laws about workers’ compensation insurance (“workers’ comp”). This type of small business insurance protects employees who get injured or ill while on the job — and can protect your business from lawsuits and extra costs.