9 Essential Types of Business Insurance

 

1. Workers Compensation Insurance (Required)

One of the three types of business insurance that, if you have employees, may be required by law is workers’ compensation. States require most employers to carry workers’ compensation insurance in case employees are hurt on the job. This is definitely a requirement that you don’t want to take lightly. Failure to purchase the required amount of coverage can result in fines and, rarely, even in criminal penalties.

2. Unemployment Insurance (Required)

Unemployment insurance is another government-required type of insurance coverage. This small business insurance covers your employees in case of a job loss or termination. Unlike workers comp or many of the other types of business insurance, unemployment insurance is not something that you purchase from an insurance carrier.

3. Disability Insurance (Required)

Disability insurance provides guaranteed payments to employees at a percentage of their income if they’re unable to work due to an illness or injury. Unlike with workers’ compensation, the illness or injury does not have to be work-related. For instance, a pregnant employee can receive disability benefits after giving birth.

4. General Liability Insurance

Although businesses are not legally required to purchase general liability insurance, this is one type of small business insurance every company should have. General liability insurance protects your business if a third party—such as a client, vendor, or customers—get injured from your business’s property, products, or services.

5. Commercial Property Insurance

Commercial property coverage insures your business’s inventory, equipment, office space, and other property against loss or damage. Commercial property insurance is a must-have for many types of businesses, especially those with a brick and mortar location.

6. Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance or malpractice insurance, is a type of business insurance that people normally associate with doctors, lawyers, and other professional service providers. For example, if a doctor makes a mistake during surgery, their malpractice insurance will cover the costs associated with an ensuing lawsuit.

7. Product Liability Insurance

Any small business owner who sells a tangible product should consider purchasing product liability insurance. You can purchase product liability insurance as a stand-alone policy or as an add-on to your general liability policy.

8. Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) covers your business against a variety of employment discrimination or wrongful termination claims brought by employees. For example, the policy would insure against the cost of defending a claim of sexual harassment or racial discrimination.

9. Key Person Insurance

Key person insurance is designed to ensure that a business can survive its owner. If an owner, or another key executive in the business, dies or becomes disabled, the ensuing toll on the business can be heavy. The business will lose income during the transition, as well as clients that the key person brought into the fold.

You can also take benefits from the private health insurance plans in PA, maybe that would fulfill your requirements related to medical prescriptions.