As an honest, hard-working small business owner, you intend to dot all of your I’s and cross all of your T’s. But unfortunately, life happens and there are hundreds of factors outside of your control. In these instances, insurance can be something that saves you from bankruptcy and keeps your business afloat so that it can regain its footing and continue thriving.

The Role of Business Insurance

The purpose of business insurance is rather simple: to keep you in business and profitable in the face of unforeseen or predictable issues, challenges, threats, and accidents.

While there are certain policies that every business should carry, there are others that are optional. And while there’s an aspect of insurance that makes it feel like gambling – you’re essentially predicting the likelihood of an event happening and how much it would cost you – it’s one of the safest, surest bets you can make.

5 Insurance Policies You May Need

As King Price Insurance Company says, “You’re unique, and so is your business.” How much and what kind of insurance you choose depends on your situation. While you’ll ultimately have to decide which policies are right for you, here’s a look at some of the ones you should at least consider:

1. General Liability Insurance

Every business – no matter how big or small – needs general liability insurance. This policy offers a wide umbrella of coverage and provides both defense and damages if you, your employees, or your products/services cause bodily harm or property damage to a third party.

General liability is typically sold as a general policy – protecting against everything from slander and medical expenses to the cost of defending lawsuits – but includes numerous add-ons that businesses can purchase to tailor to their specific business needs.

For example, if one of your biggest issues is that you have a lot of non-paying customers, you could add accounts receivable protection to your main policy. Your insurance provider can work with you to identify your biggest policy needs.

2. Property Insurance

Whether you run a home-based business out of your basement or a retail store in a strip mall, property insurance is a must for protecting your building, assets, equipment, and anything else inside.

In many cases, property insurance is automatically combined with general liability insurance, but be sure to check. And if you feel that it isn’t adequate, you can always extend coverage so that it’s sufficient.

3. Workers’ Compensation Insurance

Workers’ compensation insurance helps pay for medical care and lost wages of employees who are injured on the job. It pays out regardless of who is at fault in the accident. If the employee were to die, the policy would pay compensation benefits to the deceased’s family.

“If you have a smaller business, you may not be legally required to carry workers compensation insurance, depending on what state you live in,” insurance industry expert Janet Hunt explains. “However, even if you are not legally required to do so, carrying this coverage may still be a good idea to make sure you are protected from legal liability when an employee is injured on the job.”

4. Errors and Omissions Insurance

For businesses that operate in a professional services industry, having errors and omissions insurance coverage provides an immense amount of protection and peace of mind. It covers things like accusations of negligence or the failure to perform up to expectations, which are common lawsuits brought against certain businesses.

For example, let’s say you have a web design company and you build a website for a client. A couple of weeks later, the website gets hacked and they lose a bunch of revenue. While the client may come after you and accuse you of performing faulty work, an errors and omissions policy would kick in and protect your company.

5. Business Owner’s Policy Insurance

Some small businesses may find that a business owner’s policy (BOP) is all they need. Most insurance providers offer these as a way of packaging together all of the basic types of insurance their clients typically need, such as business interruption insurance, property insurance, liability insurance, and vehicle coverage.

Keep Your Business Safe and Sound

Any time you run a business, there will be certain risks and challenges you face. Business insurance doesn’t remove them from the equation, but it does limit the amount of damage they can inflict on you. Do your research and look for an insurance provider that puts your needs first. Bundling coverage is often the way to go, but it could also make sense to get different policies from different providers.

Work on finding plans that provide you with maximum coverage in your most vulnerable areas. As you expand and grow, you can then supplement with additional policies for added protection.