What Types of Insurance Are Best for a Small Business?

Small businesses, which are typically categorized as businesses that employ less than 500 workers in total, have a huge impact on the country’s economy. According to the U.S. Small Business Administration Office of Advocacy there are over 28 million small businesses in the United States, accounting for 99.7% of all of the businesses in the country. Insurance needs can vary by industry, as each small business is unique, so a one-size-fits-all commercial insurance policy isn’t always the most effective choice. Below are some of the best insurance options for a small business.

  • Commercial General Liability (CGL): CGL Protects against losses resulting from many of the most common litigation risks associated with running a business. It typically provides coverage for liability claims such as bodily injury or property damage on the business premises, bodily injury or property damage due to business operations, medical payments, libel, slander and copyright infringement.
  • Commercial Property: Commercial property insurance offers financial protection for losses resulting from accidental damage to the property, not including damage from floods or earthquakes. It typically provides coverage for the building structure as well as some interior items, including but not limited to walls, ceilings and flooring.
  • Business Interruption (BI): BI coverage offers financial compensation for loss of business income resulting from the necessary suspension of business operations following the direct physical loss, damage or destruction of the business’s property as the result of a covered form of peril.
  • Theft and Vandalism: Theft and Vandalism insurance covers money and securities losses that are a result of owner, executive or employee action.
  • Errors & Omissions (E&O): E&O insurance protects professional and service-oriented businesses against liability claims arising from the mistakes or negligence of the business owner or their employees.

Insurance carriers who specialize in small business insurance may offer what is called a business owners policy (BOP). A BOP is a customized package of different types of commercial insurance policies that provides small businesses with comprehensive coverage tailored to fit their individual business’s needs. BOPs can be specially made for small and mid-sized operations and can include a wide variety of industries, such as retail, food service, wholesale, lessors risk, apartments, professional services, technology services and many more.

A business owner policy typically includes the above-mentioned types of insurance policies for small businesses. Additional policies can also be added to cover buildings, contents, personal property of others on the premises, falling object damage, fire, wind and more. Some BOPs can also include equipment breakdown, exterior glass or signage and other specialty coverage. Find more information about BOPs and small business coverage options on the ATM Insurance small business coverage page.

About American Team Managers Insurance Services

Founded in 1998 by Chris C. Michaels, American Team Managers Insurance Services (ATM) has provided wholesale and MGA services to more than 5,000 independent insurance agents throughout the United States. Our goal is to establish close, long-term relationships with our agency partners and insurance carriers and provide competitive products for the Exclusive and Non-Exclusive markets that we serve. For more information on our products and services, give us a call at (714) 414-1200 to speak to a representative.