There are a variety of business insurance plans available to protect your small business. Depending on your needs, you’ll be able to craft coverage that will guard against nearly any type of misfortune. To help you understand your options, below are some of the most common types of commercial insurance coverage that will keep your business safe.

A Guide to the Best Insurance Policies for Small Businesses

1. Property Insurance

This type of coverage is essential whether you own or lease your premises. If you own, commercial property coverage helps protect your business structures against fire, storms, and vandalism. Property coverage also protects your equipment, furniture, and inventory against similar threats, as well as theft.

2. General Liability Coverage

Liability coverage protects you financially in case you or your employees accidentally injure someone or damage their property. This type of plan pays for repairs, medical treatment, and legal fees, should the incident land you in court.

3. Workers’ Compensation

Workers’ compensation pays medical costs if you or an employee suffers a workplace injury or illness. Under Connecticut law, all businesses with one or more employees or uninsured contractors must carry this kind of coverage. This type of business insurance is not required for single-person businesses or LLCs, though they can opt in if they wish.

4. Commercial Vehicle Insurance

Connecticut requires businesses to buy commercial auto insurance to cover at least $25,000 for each person injured to a maximum of $50,000 per accident. They must also buy $25,000 of property damage liability. However, for buses and large freight vehicles, you may need between $1 million and $5 million in commercial vehicle liability, depending on the size, weight, and number of passengers.

5. Key Employee Insurance

Because some workers are so valuable their loss could jeopardize your business, you can buy key employee coverage. It’s a life insurance policy that pays out upon the death of a worker, such as a long-time manager or the top salesperson, who performs an essential task or has indispensable knowledge.

To discuss your business insurance needs with an experienced professional, contact Action Auto Insurance Agency in New London, CT. As an independent broker, they've been helping businesses and individuals design the right policies at the right prices for more than 20 years. They also offer affordable motorcycle, condo, and home insurance. Visit their website to view directions and office hours or call (860) 444-7224 to learn what types of commercial insurance are available.