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Types of Insurance Small Businesses Need in Colorado

Aug 10, 2022

Commercial Insurance

Types of Insurance Small Businesses Need in Colorado

Commercial insurance for small business policies can be general or customized. Learn your options, then decide based on your specific needs.

Types of Liability Insurance for Small Businesses

  1. General liability insurance

    Customers, vendors who deliver goods, and visitors to your establishment can claim injuries or property damage.

    Coverage: Legal costs, including court settlements

  2. Professional liability or errors & omissions (E&O) insurance

    This policy can protect you from loss for mistakes made by your personnel that caused injury or financial harm to your customers and clients.

    Coverage: Attorney fees, court settlements, and judgments

  3. Workers' compensation insurance

    This insurance covers you when your employees sustain work-related injuries or illnesses.

    Coverage: Medical expenses, a percentage of lost income, and a death benefit to the victim's survivors

  4. Cyber liability insurance

    Cyber liability insurance helps your business respond to a data breach of your confidential information or if your computer system and data get hacked.

    Coverage:  Legal fees and restoration costs

  5. Commercial auto insurance

    If there are any bodily injuries due to a crash and financial damage to property, other drivers, property owners, or any third party can blame you for the resulting expenses. 

    Coverage: Attorney fees and court-related costs, including settlements

    Also Read: Commercial Auto Insurance for Plumbers, Roofers, and Electricians

  6. Employment Practices Liability Insurance (EPLI)

    Ex and current employees and job applicants can blame you for violations of employee rights such as discrimination, harassment, and physical harm.

    Coverage: Legal costs, including court settlements

  7. Directors and officers (D&O) insurance

    D&O insurance will pay for liability costs if any of your current or former employees, government investigators, and third parties accuse your business of misuse of funds by executives, failing to comply with government regulations and other governance deficiencies.  

    Coverage: Legal costs, including settlements

  8. Liquor liability insurance

    Patrons and third parties who are the victims get injured, or if there's property damage resulting from a customer's drunken behavior, your liquor liability insurance comes into action.

    Coverage: Legal costs, including court settlements

Frequently Asked Small Business Insurance Questions

How do I know if I need small business insurance?

Review the insurance laws for businesses in your state. All states require employers of a certain number of employees to carry workers' compensation insurance. The other main requirement is to purchase commercial auto insurance if you own vehicles for business use. Otherwise, how you tailor your insurance coverage will depend on the risks involved with running your operation.

What is a Business Owner's Policy (BOP)?

A Business Owner's Policy combines general liability with commercial property insurance. It's an effective way to cut insurance costs since a BOP plan typically costs less than getting the two coverages separately. The coverage also pays for loss of business income when your operation temporarily shuts down due to property damage.

What does small business insurance not cover?

Standard insurance for small business policy only covers so much, but you can purchase add-ons known as extensions or endorsements. Typical plans only cover certain assets damaged by named perils. The insurance does not cover:

  • Damage to your property by floods
  • Damage caused by fraud or negligence
  • Wrongful termination of an employee

How Riverbend Insurance Can Help

Business insurance is an investment that adds up to careful risk management. Having the right coverage in place when a fiasco unfolds can save a company thousands or even millions of dollars in litigation costs. Contact our experts at Riverbend Insurance to find customized small business insurance in Denver, Colorado