Every year, more than 627,000 new small businesses open up for the first time. Though they operate in different industries and provide different services, they all need to do what they can to keep their business safe.

The best way to protect your business is to invest in the right types of business insurance coverage. You can learn more about different types of insurance, and compare them based on policy and cost on platforms such as insuranceranked.com. 

But what types of business insurance documents and policies do you need to fully protect your company’s interests? These are a few of the most important types of insurance plans businesses in almost every industry can benefit from.

1. Workers’ Compensation Insurance Documents

As an employer, you know that protecting your employees is one of the most important things you can do for your business. Unfortunately, it’s impossible to eliminate the risk of on-the-job injuries completely.

That’s where workers’ compensation insurance can help. This type of insurance covers the cost of injured employees’ medical treatments. It also provides a portion of their wages while they recover.

The law requires most businesses to have workers’ compensation insurance in place once they hire more than two employees. If you don’t have a valid workers’ comp policy in place, you risk getting sued by your employees and fined by the local government for failure to comply.

2. General Liability Documents

No matter what types of safety precautions you take at your business, you’re still responsible for all accidents that happen on the property. If a customer or client slips on a wet floor and gets hurt, you could be liable for the cost of their injuries.

Worse, if that client sues the business, your company could be liable for the cost of their legal expenses, too.

General liability insurance will help protect you from those unexpected expenses. If another party sues the company, the insurance will help cover your legal expenses. Even better, it may also provide funds for any settlement you’re ordered to pay.

3. Proof of Commercial Property Insurance

No matter what type of business you own, you rely on equipment to keep things running. That equipment gets housed in your office or headquarters each day.

So, what would happen if something damaged the building or destroyed the equipment you house inside? You’d have to pay for the repairs and replacements.

Commercial property insurance helps cover the cost of repairs or replacements when your property gets damaged. This insurance covers the grounds, the building, and everything you keep inside of it.

The key to getting the most out of your commercial property insurance is to take regular inventory of everything in the property. This way, you’ll be able to get a larger settlement from the insurance company if you ever have to file a claim.

4. Commercial Auto Insurance Documents

If you use cars, vans, or trucks for business purposes, you need to make sure those vehicles are properly insured. Your personal auto insurance doesn’t count, unfortunately. Worse, your insurance company can revoke your policy if they find out you’re using the car for commercial purposes.

That’s why you need to invest in commercial auto insurance for each vehicle you use for business. These policies cover the vehicle owner and any employees that use the vehicles for work purposes.

Keep proof of those insurance documents in the glove compartment of each work vehicle. This will make it easier if you’re ever involved in an accident while using the vehicle for work.

5. Professional Liability Coverage

If you provide services to clients and customers, there’s always the risk that you’ll damage their property in the course of providing those services. When this happens, you’ll need professional liability coverage to cover the expenses.

This is a completely separate policy from your general liability insurance. It’s also smart to go industry specific, for example Marine’s tattoo studio insurance is a great choice for those running a tattoo studio.

The coverage will also protect you from lawsuits if customers claim that your products or services caused damage or resulted in injuries. If you’re not sure how much coverage you need, ask your insurance agent for advice.

They’ll be able to review the risks your business faces and can recommend a policy to fully protect your company.

6. Data Breach Insurance Documentation

No matter what industry your business is in, you store sensitive information on-site at all times. This could be payment information for clients, contact details, or even proprietary secrets.

If a hacker gained access to that information, it could damage your reputation and open you up to additional lawsuits.

Data breach insurance helps cover the cost of any damages resulting from the breach. Keeping proof of this insurance in your office is always a good investment in your company’s financial security.

7. Business Income Insurance

You do what you can to keep your business running at all times. But what would happen if you had to close your doors for months on end due to unforeseen damage to the property?

How would you continue to bring income in during an event like this?

Unless you have the funds to find a new location, invest in new equipment, and essentially start from scratch, you couldn’t. Business income insurance helps provide funds to keep your employees from going without paychecks. It also helps you cover business expenses like rent and other necessities so you can get up and running as fast as possible.

Keep in mind that you’re only able to replace revenue with this policy up to the policy limit. Talk to your insurance agent about your options and your business’s needs before you invest in coverage.

This way, you’ll have enough to stay afloat even if your business shuts down temporarily.

Keep These Insurance Documents Handy

The right insurance can protect your business for years to come. If you haven’t already, talk to your insurance agent about investing in these different types of insurance coverage as soon as you can.

Once you buy the policies, keep the insurance documents handy in case you need to file a claim.

Looking for more ways to help make your business more profitable and reduce your risk of loss? Check out our latest posts for more helpful advice.

Jane