Why You Need General Liability and Property Insurance

Question: Hey Steve, I was wondering if you could give me a little insight. What kind of insurance does my small business really need? There are so many options, it’s confusing. Thank you!

–Kasandra

Steve Strauss: When I was a lawyer, I represented insurance companies for a while. And of course, I’ve purchased many fonts over the years for my own small business. But to answer your question, I looked for a real expert.

Stephanie Bush is the small business and personal manager for Hartford, an insurance company that’s big on small business. It has been insuring small businesses for over 200 years.

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Strauss: Let me start with a general question. What insurance does the typical small business need?

Stephanie Bush: “It certainly depends on the type of business, its size, whether or not there are employees. However, there are very common types of insurance that may be suitable for every small business.

“Almost every business will need general liability insurance, sometimes called commercial general liability. Among the items covered by general liability are the two most common risks: a customer being injured by the company, for example in a fall, and damage to a customer’s property due to the activities commercial.

“Property insurance is probably the second most common insurance a business will need and it covers their business assets like equipment and inventory and their building if they have one.” (Note: Public liability and property insurance are often combined into one policy called a Business Owner’s Policy or BOP.)

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If customer information is compromised by a cyberattack, the business owner may be liable.  Picking up the pieces after a cyberattack can be difficult and costly.  This specific type of insurance helps meet the challenges and cover the associated expenses.

Stephanie says other types of insurance a small business might need are

  • The worker’s remuneration
  • Professionals may need a professional liability policy, sometimes called errors and omissions or E&O.
  • If a business uses vehicles, it will also need a commercial automobile policy.

Strauss: In this online world we live in, it seems like cyber insurance or online insurance should also be something a small business should consider, right?

Bush: “Of course, because today any business can be vulnerable to a data breach or cyberattack. As such, companies need cyber or data breach insurance to protect their own proprietary data, as well as to protect their customers’ proprietary information. If customer information is compromised by a cyberattack, the business owner may be liable. Picking up the pieces after a cyberattack can be difficult and expensive, so this specific type of insurance helps meet the challenges and cover the associated expenses.

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Strauss: What mistakes do you think small businesses make when it comes to insurance?

Bush: “Small business owners manage a lot. They bring their unique gifts and passion to serve their communities every day. At Hartford, we know they need to be protected enough so they can keep doing what they love.

“A common problem is not having commercial insurance at all. All it takes is a theft, a fire, a long power outage or a customer slipping and falling and the owner of a small business can find itself without the help it needs.

“The solution is to speak to an independent insurance agent who can help a small business owner understand how to get covered for their specific business in an affordable way. It really is an easy process and we see the importance of it. everyday.

Strauss: Anything else we should know?

Bush: “The service is important and it should be easy and accessible online for them. It should be easy to verify payments, go through a worker’s compensation audit, get an insurance certificate. The insurance company must have modern service capabilities and a reputation for taking care of its customers. »