It is imperative for small business owners to have business insurance. Even though the majority of providers begin with business owner policies (BOPs), commercial auto insurance, and other fundamentals, they might not have all the coverage you require. Thankfully, there are numerous possibilities for niche business insurance. Here are five distinct forms of company insurance that are now offered.
Insurance for data breaches
Cyber liability insurance, commonly known as data breach insurance, provides security in the event that your company’s personally identifiable information (PII) is lost or stolen. The coverage mostly covers virus-related damage as well as thefts or losses associated with cybercrime, like a hack. Though each policy is unique, some also cover data leak situations involving the unintentional exposure of PII.
An insurance policy covering data breaches offers financial support to enable prompt notification of affected persons or enterprises, credit monitoring for affected parties, and reputation restoration efforts. If your business handles personally identifiable information (PII), adding this kind of protection makes sense, as the average cost of handling a data breach in the US is $9.44 million.
Hazard insurance is a type of coverage that guards both the physical location of your business and the equipment that keeps it running. In the event of an occurrence such as a fire, the policy will assist in defraying the cost of repairs to the physical structure. In the event that equipment is damaged during an eligible event, the coverage also covers replacement and repair expenses.
Hazard insurance can cover rental property in addition to company-owned property. As a result, it guarantees that you won’t have to pay for any damage done to rental property during a qualifying incident.
Product liability protection
Product liability insurance is a potentially essential form of protection for businesses that produce goods. It provides you with financial assistance in the event that a third party is harmed by your product or that the firm is sued for a product-related matter.
For instance, a customer might file a lawsuit if they purchased your goods and they broke during normal use, injuring them physically. If you have product liability insurance, you can avoid having to pay for everything out of pocket and have the means to handle this potentially difficult scenario.
Commercial Overhead Protection
Business overhead insurance covers running costs in the event that you are unexpectedly incapacitated and unable to conduct business. It is also known as business overhead expenditure insurance or business expense insurance. It covers costs like electricity bills and employee salaries, giving you the ability to make sure those costs are properly handled. But bear in mind that it does not provide you, the business owner, with a wage.
Key personnel protection
A key person insurance policy pays out in the event that the insured person passes away, replacing any lost income. A key person is usually an executive or other high-ranking employee of the company who significantly affects profitability. It’s basically taken out by an employer rather than a family member, just like many other death benefits, like a life insurance policy.