Below, we explore key insurance policies every small business owner needs, or should at least consider, as well as some often-overlooked policies that can be game-changers. We also explain why working with a local insurance company is a smart choice.
What Are the Key Insurance Policies Every Small Business Should Carry?
While every business has unique needs, there are core insurance policies that nearly all small businesses should have to safeguard against common risks.
- General Liability Insurance
This foundational coverage protects your business from claims of bodily injury, property damage and personal injury. For example, if a customer slips and falls on your premises, general liability insurance can cover medical expenses and legal costs. - Commercial Property Insurance
Whether you own or lease your business property, commercial property insurance is essential. It protects your building, equipment, inventory and even furniture in the event of a fire, theft or certain natural disasters. Even if you operate from a home office, this policy can cover business-specific assets not included in your homeowner’s policy. - Workers’ Compensation Insurance
If you have employees, most states, including Massachusetts, require you to carry workers’ compensation insurance. This policy provides coverage if an employee is injured or falls ill due to work-related activities, ensuring they receive proper medical care and compensation for lost wages. It also shields your business from potential lawsuits related to workplace injuries. - Professional Liability Insurance (Errors & Omissions)
Businesses that provide services or advice should have professional liability insurance. It covers claims of negligence, mistakes or failure to perform a service. For instance, if a client claims your advice caused financial loss, this policy will help cover legal costs and damages. - Business Interruption Insurance
When disaster strikes, you might have to temporarily close your business. Business interruption insurance helps cover lost income, operating expenses and even relocation costs if a covered event like a fire or storm disrupts your business.
Policies You May Overlook but Shouldn’t
There are several policies that many small business owners believe they don’t need, but that could be critical in certain situations.
- Cyber Liability Insurance
As businesses become more reliant on technology, cyberattacks are on the rise, and small businesses are frequent targets. If your business handles customer data or credit card information or even just maintains an online presence, cyber liability insurance can help protect your business from the costs associated with data breaches, cyber extortion and system restoration. - Employment Practices Liability Insurance (EPLI)
Many small businesses don’t consider EPLI until they face an employment-related claim. This policy covers your business if an employee sues for discrimination, harassment, wrongful termination or other employment issues. Even if you have strong HR practices, lawsuits can happen, and EPLI can help cover legal defense costs and settlements. - Commercial Auto Insurance
If you or your employees use vehicles for business purposes—whether it’s delivering goods or traveling between job sites—personal auto insurance won’t provide coverage. A commercial auto insurance policy protects your business vehicles and can cover third-party injury or property damage claims.
The Benefits of Working with a Local Insurance Company
In today’s digital age, you may be tempted to purchase business insurance online from a national provider. While that may seem convenient, working with a local insurance company can provide several advantages.
- Personalized Service
Local agents like ours take the time to understand the unique needs of your business and its local environment. We aren’t just offering generic coverage but are tailoring policies that truly fit your business. - Local Expertise
Our agents know the specific risks your business may face in western Massachusetts. Whether it’s regional weather-related concerns, industry-specific risks or local regulatory requirements, we provide more nuanced advice and coverage. - Stronger Relationships
Working with The Dowd Agencies, you get the chance to build a long-term, trusted relationship. Instead of being just another policyholder, you can develop a personal connection with our team who will be there when you need us most. We’ve been around for more than 125 years, and we aren’t going anywhere!
At Your Service
Running a small business involves taking calculated risks—but your insurance coverage shouldn’t be one of them. With the right insurance policies, you can safeguard your business from unexpected events and ensure its long-term success.
If you’re not sure what type or level of coverage you need, our local, experienced professionals can help. Reach out to schedule an appointment today.