Small Business Insurance Portfolio Essentials

Every business must understand their unique insurance needs and acquire the best policies to protect themselves and allow their business to thrive. However, there is a set of coverages that offer standard protections essential for just about every industry. It is in your best interest to secure flexible coverage to protect all of your assets. Here is a breakdown down of the types of business insurance available and why they are important in providing the necessary comprehensive package.

General Liability

Liability coverage protects companies from financial responsibility regarding property damage or bodily injuries caused by them, their employees, products, or services.

This broad coverage encompasses three types of business liability:

General Liability

Protects businesses against accidents, injuries or negligence claims.

Product Liability

Protects manufacturers and vendors of products against product defect claims, and damage or injury caused by the product.

Professional Liability

Covers errors or negligence (i.e., malpractice insurance for a physician).

Commercial Auto Insurance

Commercial auto insurance protects company vehicles. This policy will cover the financial damages resulting from personal injury, collisions, and uninsured motorists. Commercial auto insurance is a smart purchase since personal auto policies do not cover work-related employee commutes, such as transporting products or equipment. The financial loss that could arise from accidents and lawsuits is not worth the risk when you have such coverage available.

Property Insurance

Property insurance covers a business from specific unforeseen incidents that jeopardize property and assets such as fires, storms, vandalism, and theft.

Property insurance policies cover business buildings and property (owned equipment and supplies).

There are two forms of policies, all-risk, which covers the majority of incidents; and peril-specific, which is incident-specific. The potential financial losses associated with these incidents are quite significant and can result in the loss of your business.

Workers’ Compensation

Workers’ compensation provides coverage for employees who become injured on the job and may offset employee medical, rehabilitation costs, and income loss.

While this coverage is typically legally required, it is also smart protection for a business owner, as employees waive their right to sue the business for negligence.

Life Insurance

With life insurance, business owners pay a premium in exchange for a payment of benefits to the beneficiary of an employee who passed away. This policy protects businesses from the loss of an employee whose death significantly impacts business operations and offers peace of mind to loved ones financially affected by the unexpected loss of that individual.

Health Insurance

Most health plans encourage preventative care, which improves overall health through wellness awareness. Business owners should consider the value of providing health coverage. Some benefits of offering this to employees include:

  • Employee satisfaction and morale
  • You can deduct 100% of the cost as a business expense
  • Businesses with less than 25 employees may be able to receive a tax credit
  • You can reap the rewards of employees who are generally healthier, and therefore more productive.

Business Owner’s Policy (BOP)

Business owner’s policies (BOP) protects both property and liability risks under one package. Small business BOPs are designed to evaluate a unique set of risks that a business is exposed to and put them in one policy.

Coverage generally includes:

  • Property insurance
  • Business interruption insurance
  • Liability protection
  • Medical payments
  • Income loss
  • Data breach
  • Equipment breakdown
  • Employment practices liability

BOPs are created for better efficiency when determining what coverage to purchase.

About Provident Protection Plus

At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.