Starting a Small Business: What Kind of Insurance Do I Need?

As a small business owner myself, there are hundreds of things on your “to do” list to get your business off the ground and running smoothly.  One of those things should be to have the right business insurance in place to handle losses that could potentially put you out of business.  Having proper coverage limits for general liability and business personal property is always important.  Here are a few other important coverages to consider:

1.  Professional Liability – Does your business/profession put you at risk for claims by your clients from your alleged faulty advice or defective product/services?  Professional liability is otherwise known as errors & omissions (E&O).  This coverage may also provide the cost of defending you in court and cover damages awarded in a civil lawsuit. 

2.  General Liability – What if you cause an accident during the operation of your business and cause property damage and/or bodily injuries to others?  General liability coverage provides coverage for damages and injuries to others as a result of your negligent acts. 

3.  Cyber Liability – This is a relatively new coverage offered by many insurers.  This covers a business’ liability for data breach from hackers where customer data has been compromised or other similar cyber threats.  This type of coverage can help businesses minimize the impact to their reputation by providing breach notification and credit monitoring services to customers.  It may also provide the cost to defend you in court if you are sued under the allegation of data breach. 

These three coverages are important; however, there are multiple other coverages offered by insurers that may be beneficial to your small business.  Sit down with an insurance professional that you trust and have a discussion to tailor coverage that is specific to your small business. 

If you have questions regarding business insurance, please stop by my offices in McKinney, Texas or give me a call at (972) 727-9111.

Stan Polk, CPCU - Agency Owner

6951 Virginia Parkway, Suite 316

McKinney, TX 75071

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I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.