"What insurance do I need for my small business?" That’s a question UFG agents hear over and over again. For good reason, too. 

While there are many types of industry-specific insurance policies, there are certain types of insurance that all businesses need—including some required by law. 

The federal government requires every business with employees to have workers' compensation, unemployment and disability insurance, according to the U.S. Small Business Administration. Many states also have insurance requirements that small business owners need to meet—that information is determined on a state-by-state basis. 

Here are four basic types of insurance coverage your business may need whether you’re about to launch or have been in business for years:

What insurance do I need for my small business?

1. General liability: This policy covers medical expenses and legal fees in the event that you, your employees or your products or services cause property damage or bodily injury. Liability insurance can also cover libel or slander claims. 
2. Commercial property: This policy protects your company's physical assets from threats like fire, storms, civil disobedience and theft. It can cover everything from your building and furniture to equipment and inventory, making it a must even if you work from home. Talk to your UFG insurance agent for more information. 
3. Professional liability: This policy protects your small business from financial losses due to malpractice, errors or negligence. Often referred to as errors and omissions insurance (E&O), this type of policy is essential for those in professional service fields, including everyone from accountants to stylists.
4. Commercial auto: If you have business-owned vehicles, you'll need to get commercial auto coverage to protect you and employees from on-the-job accidents, injuries and damage. Although auto rates have been increasing lately, it’s still an essential coverage on commercial lines insurance policies for businesses with a few vehicles or a fleet. 

Businessowners policy

A good place for many small business owners to start is with a businessowners policy, or BOP for short. This offering combines property and liability insurance into one policy, making it easier to protect your business—and usually at a price less than purchasing individual policies. Specialized coverages and endorsements can also be written to include added coverage to better protect small businesses with specific needs, such as those in construction or manufacturing.

We hope these basic types of insurance help answer the question: “What insurance do I need for my small business?” The best place to start is by contacting your local UFG insurance agent to determine the right coverage for your needs. With the security of comprehensive insurance coverage, you’ll be able to safely grow your business and pursue new opportunities as they arise.