Believe it or not, roughly 99.9 percent of the businesses operating in the United States are small businesses.

Those small businesses serve almost every industry you can imagine. However, they all have one thing in common: they need commercial insurance.

The risks that each small business faces differ based on their industry, their location, and their size.

There are some policies that almost every business needs to be fully protected.

Before you can invest in coverage, you need to understand the types of commercial insurance available to you.

Here are some absolute must-have policies every business owner needs.

General Liability Insurance

Accidents happen all the time and you can never predict how bad they’ll be.

If a client or customer gets injured on your property, they can sue you for the cost of any medical treatments and expenses incurred from their recovery.

If their personal property gets damaged because of your work, you could also be liable for those repairs.

General liability insurance helps protect you from those lawsuits.

If something happens and your business gets sued for damages relating to a qualified incident, your insurance policy helps pay for the legal fees and settlement amounts.

Keep in mind that it only covers you up to the limit of the policy.

You must pay any remaining expenses out-of-pocket.

Ask your insurance agent about your risks and let them help you determine how much coverage you really need.

Commercial Auto Insurance

Unfortunately, your personal car insurance policy isn’t enough to protect you on the road if you’re using your car for business purposes.

Worse, the insurance company may deny a claim entirely if they find out you’re using the car for business.

That’s where a commercial auto insurance policy can help. It protects you and anyone who uses the car for business.

It’s not a substitute for traditional car insurance.

If you’re using your personal vehicle, you’ll need both policies to stay fully protected and you’ll want coverage for every commercial car in your fleet.

Property Insurance

Owning your business’s building is a huge investment. If something happens, you’re responsible for the full cost of repairs.

Property insurance protects everything inside the building, the building itself, and the grounds the building is on.

If someone vandalizes your property or a fire tears through the first floor of the building, the policy will help cover the damage.

This is one of the types of commercial insurance that can help keep your operating budget in good shape.

Workers’ Compensation Insurance

As an employer, you’re responsible for your employees’ safety anytime they’re at work or performing work-related duties off-site.

If they’re injured as a result of their duties, you’re responsible for paying for their medical treatments.

Workers’ compensation coverage helps protect you and your employees if they’re injured on the job.

The policy covers the cost of their medical treatment and even provides them with a portion of their regular income during recovery.

It’s also a legally required policy for most businesses that hire even part-time employees.

The best thing you can do is invest in a policy before you hire your first employee.

This way, you’ll have protection from the very beginning.

Business Interruption Insurance

What would happen to your business and your employees if you had to close your doors for a few months?

Chances are that it is hard to stay afloat or encourage your employees to stay and not start looking for a new job immediately.

Business interruption insurance helps cover the loss of profits, pays for your employees’ lost wages, and makes it easier for businesses to survive the temporary closure.

It’s a great supplement to property insurance which would help cover the cost of the physical repairs.

Location-Specific Insurance

Property insurance doesn’t cover every type of damage and different locations face different risks.

For example, if your building is next to a major waterway or on a floodplain, you’ll want to invest in commercial flood insurance.

If your building is near a fault line, you may want to invest in earthquake insurance. It all depends on where you’re located.

The best thing you can do is discuss your concerns with your insurance agent.

They’ll be able to look at the risk factors for your building and find the right supplemental policies to keep you safe.

Data Breach Insurance

Almost every business stores some sensitive information on computers.

This can be anything from credit card numbers to clients’ personal contact information.

Unfortunately, that information isn’t always secure.

If someone were to hack into your computer system, that information could get intercepted.

Cybercrime is on the rise and businesses of all sizes are at risk every single day.

In fact, more than 20 percent of small businesses get hacked every year.

Data breach insurance helps protect you from damage caused by cybercriminals.

It gives you the resources you need to recover that sensitive information and establish better safety measures against future attacks.

Life Insurance

As a business owner, the success of your company is on your shoulders.

You’re in charge of its growth and future plans.

Think about what would happen if you weren’t around to make sure it succeeds.

Would the company have enough capital to survive on its own merits?

Would your family and loved ones still have the resources they need to make ends meet?

Life insurance policies allow you to protect both your loved ones and your company’s future.

If you pass away, the policy can give your beneficiaries the money they need to preserve your legacy.

Get the Right Types of Commercial Insurance

Every business is unique.

They face different risks and have different needs.

That means that the types of commercial insurance right for your business may not be the same as others in your industry.

Contact us to schedule an appointment with our experienced insurance agents.

We’ll help you find the best coverage options for your business and your needs.