Some types of insurance, such as general liability, are a necessity for all businesses, but your company may need coverage unique to your business circumstances. Likewise, a standard policy may be missing crucial clauses while some inclusions are unnecessary.
Consider whether these types of insurance may be right for your business.
Auto insurance
A car accident could cause damages far above what your personal auto insurance will cover, and a personal policy may not even cover driving done for work. Hired and nonowned auto policies will cover damages from accidents in your personal vehicle that you are using for work.
If you have a company vehicle and policy, check the coverage. While $1 million coverage for liability and auto may seem excessive, that amount may actually be a safe choice.
Key person insurance
If your company cannot remain functional without one key professional, you may benefit from a life insurance policy on that person. In the event of your key person’s untimely death, you would have the money to stay open while recovering from the loss or to close down the business.
Business interruption insurance
As many companies have discovered, temporary closure can become permanent due to lost income. If your company is not able to fully operate because of a disaster or national emergency situation, business interruption insurance can cover some or all of your losses.
Cyber insurance
The prevalence of data breaches may have you concerned about what a hacker could do to your company and your customers’ privacy. A cyber insurance policy may keep your company alive while you recover from a security breach.
The amount of coverage should always be commensurate with the unique level of risk your business faces, which may require a careful analysis to determine.