Top Five Risks Business Insurance Covers

Many people dream of quitting their steady 9-5 jobs and starting their own business. However, a business comes with a lot of risk. When you own your own business, there are no certainties. There is no steady paycheck. You do not know what your revenue will be like. You could make a lot of money one month and hardly any the next month.

Plus, accidents and natural disasters can occur, wiping out your business. It may make you wonder why anyone would take on all these risks. More than likely, they have business insurance.

There are many types of business insurance to cover all the possible risks you may face, from equipment damage to business interruption to data breaches. Here’s a look at the top five risks that business insurance covers.

1. Property Damage

When business owners think of accidents that could affect their business, they may think of weather disasters and other events that could cause property damage. If your business has a physical location, a fire or even vandalism could destroy the building and its contents. What would happen then? Would you have enough money to rebuild? A business owner’s insurance policy can help pay for repairs and replacement.

2. Data Breaches

Data breaches are on the rise, especially in companies with fewer than 250 employees. Data breaches are common among companies that accept credit cards, so ensure your credit card technology meets EMV standards. You can also opt for cyber insurance, which can help protect you from the fallout of a data breach, such as costs related to data breach notification, remediation, card payment penalties, and crisis management.

3. Injuries

If a customer is injured at your business, you may be liable for their injuries, which can get expensive. Commercial general liability coverage can protect your business. This coverage offers protection for related lawsuits, including medical expenses, court costs, and/or legal fees.

4. Professional Liability

If your business provides services or advice to clients, you could be accused of providing inaccurate advice. You could be sued, and defending against these claims can be expensive. The best way to limit your liability is to have a clearly written contract defining the services and advice you will provide. You can also get professional liability insurance, also known as errors and omissions insurance. The coverage can help cover legal fees or other costs stemming from judgments against you.

5. Business Interruption

An event or a disaster could make your business location uninhabitable. It is important to have a plan in place. Business interruption insurance can help replace lost business income or pay for extra expenses if you cannot operate due to a covered event.

Contact Us Today

You may think of your company as just a small business, but it is prone to many of the same risks as a larger company. Do the right thing and get protection and peace of mind.

Hartman Insurance Agency, Inc. will help you understand every type of insurance you legally require for your business. We will also inform you of your choices for optional coverage.

Schedule a consultation with our Saline, Michigan, team today by filling out the online form or calling (734) 999-4190.