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Important insurance coverages you should consider for your small business


Smiling blonde-haired woman wearing apron and standing outside of her flower store

As a business owner, it can feel daunting trying to navigate the different types of commercial insurance coverage and understand what’s right for your business. While there isn’t a one size fits all solution, the right insurance provider can help give you the tailored coverage your business needs.

Our trusted partner, TruShield Insurance, breaks down six common types of business insurance coverage that you should consider. 

1. Commercial general liability insurance

Regardless of the type of business you own, or the industry that you work in, this coverage is essential. Commercial general liability insurance is designed to protect you and your business from a loss if you’re found legally liable for bodily injuries or property damage to a third party caused by the product you sell or the service you provide.

Bodily injury claims are quite common for small businesses. For example, if a customer were to trip and fall on the stairs of your premises, they could file a lawsuit against you for any costs related to their injuries. Lawsuits like these can be incredibly costly and time-consuming, and you could end up being financially responsible for costs associated with pain and suffering, medical bills, lost wages, and legal fees. 

Property damage claims are another serious concern for small business owners. For example, if you own a housekeeping business, and while cleaning a client’s home you accidentally knock over a lamp, breaking it and damaging the floor, you could be liable. Your commercial general liability insurance could help you cover any costs related to these damages. 

2. Commercial property insurance

If your business has a physical location that it operates out of and any business assets like computers, photocopiers, furniture, and/or stock, you will need commercial property insurance. Even if you run your business out of your home, most home insurance policies won’t extend to cover your business operations, so this is an important coverage to consider. 

Commercial property insurance is designed to help with the repair or replacement costs of your physical assets, due to loss or damage from things such as fire, water damage, vandalism, and more. If damage is done to your property as a result of an insured peril, this coverage can help mitigate the long-term effects of the loss, and limit your business’s downtime. 

3. Business interruption insurance

Running your own business requires patience and resilience, but both those things can get tested when an unexpected disaster strikes. These unexpected scenarios may be detrimental to your income and business as a whole. 

Business interruption insurance is designed to help keep your business going after you suffer a covered loss that disrupts, reduces or totally eliminates your income. This coverage can provide financial relief to help cover your bills, payroll, and other ongoing expenses until you’re back on your feet. Essentially, this coverage replaces your lost net income so you can cover your ongoing business expenses until your business has recovered from the insured loss.

4. Equipment breakdown insurance

Equipment breakdown insurance is essential to protect your business from equipment damage and failure, which is excluded under the property coverage. If you have refrigeration systems, air conditioners, freezers, or an electrical oven and that equipment suddenly and accidentally breaks down, it could throw a wrench in your operations. Equipment breakdown insurance is a great add-on to your commercial property insurance. This coverage can help with repair or replacement costs when your equipment breaks down without warning. 

5. Cyber risk insurance

In today’s digital world, cyber threats are on the rise. Keeping up with them can be a challenge—not to mention navigating changing regulations regarding privacy breach reporting and record keeping. Cyber risk insurance is designed to help protect small businesses like yours from certain losses associated with cyber or privacy breaches and/or compromised data to both customers and third parties that may result in financial loss, disruption of service, or damage to the reputation of a business. If your business gets hacked, a device containing sensitive information is breached, or a document containing personally identifiable customer information is lost, cyber risk insurance could help cover the cost of remedial actions. It could also help with the costs of legal claims, network repairs, and public relations services to get your business back on track faster.

6. Errors and omissions insurance

If you own or run a business that provides clients with professional, digital, and/or creative services, you should consider this coverage. Errors and omissions insurance (also known as E&O or Professional liability insurance) can help protect you from claims of negligence related to your professional services. E&O insurance provides coverage for financial loss where the CGL does not. For example, you may be covered if a client claims that errors in your work resulted in damages that caused direct economic losses. 

Protect your business with TruShield Insurance

While these coverages are vital to most operations, all small businesses are different. That’s why TruShield offers tailored coverage to help protect the business you’ve worked so hard to build. 
Get a quote with TruShield today and enjoy a preferred commercial insurance rate as a valued Meridian member.

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.TruShield Insurance and TruShield Insurance logo are trademarks of Northbridge Financial Corporation, licensed by Northbridge General Insurance Corporation (insurer of TruShield Insurance policies). Terms, conditions and exclusions apply. See policy for details.

Meridian Credit Union communications are intended for informational purposes only and do not constitute financial advice or an opinion on any issue. We would be pleased to provide additional details or advice about specific situations if desired.

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