By Gemma Moss

This post is sponsored by Next Insurance, online insurance tailored to small businesses needs and budgets.

Running a small business always comes with risks, in so many areas. Someone could sue the business and it could wipe the entire business out due to the cost that comes with it. The good thing is that business owners can now have access to a wide range of insurance as provided by Next Insurance that could protect them from possible problems. Here are some of the most important insurance policies you need to have.

1. Professional Liability Insurance

This is also known as ‘errors and omissions’ insurance. It covers the business from negligence claims as a result of harm that stems from mistakes or inability to perform. Errors can happen in any industry, although the risk in some is higher. Nevertheless, you need this type of insurance since you will never know when mistakes could occur.

2. Property Insurance

It does not matter whether you are just renting, or you own property. You need this insurance. This covers not only fires, earthquakes and floods. It also includes damage to equipment, furniture and many other items. Just make sure you understand what the insurance covers. Sometimes, major destruction is not included as you need a different policy for that. Find out if your area is prone to these problems so you can decide which insurance would be appropriate.

3. Workers’ Compensation Insurance

This is important on top of the insurance policy the business already has. This covers medical treatment, death benefits and disability compensation for the employee if something bad happens while performing the job. Even jobs that are deemed low risk are not totally safe. Hence, as a business owner, you should ensure to obtain this policy for your employees.

4. Product Liability Insurance

If you are in the business of manufacturing products, you need this insurance. Even if you have done everything to make sure that your products are of high quality and the finest standards, people could still sue you for the tiniest issue. With this insurance, you will be protected.

5. Business Interruption Insurance

There are instances in which the business might not be able to operate. Catastrophic events and disasters might prevent the business from earning income. This also stops the employees from earning money. This insurance will cover the cost while the business is not earning and will pay employees who have lost income due to business interruption. This is usually applicable to businesses with a physical location.

These are just some of the insurance policies you need to have if you run a small business. Getting the best insurance is something to consider even before you start launching the business. Once you have opened, you are all set.