There are three types of small business insurance you need, including one that is mandatory. With that said, however, under no circumstances should a business be uninsured for its property, equipment, and inventory, as well as against its potential liabilities, in this lawsuit-happy age. You can insure your property by categories or by events, such as fire, theft, or vandalism. Basic property insurance will generally cover your losses in the event of a fire or a lightning strike, and will pay the cost of removing property to protect it from further loss. Additionally, a standard small business policy will usually cover losses from windstorm, hail, explosion, riot and civil commotion, and damage caused by aircraft, automobiles, or vandalism.
Optional coverage can insure against earthquakes, floods, building collapse, and glass breakage.
Property insurance can be categorized by what is insured and by the events leading to a loss. You should take a complete inventory of all your business property, determine its value, and decide what's worth insuring. For example, you'll want to make sure your building is covered, as well as your inventory, furniture, equipment, and supplies. Even if your business rents space, your lease might require certain types of insurance coverage that you must carry. However, just because the building owner carries all the necessary insurance on the building in which you operate, doesn't mean it will cover any of your equipment, furniture, and other business possessions.