Owning a small business is hard — and knowing what type of insurance to have forthat business? Even harder. Having the right insurance will help your businessin the long run, especially as you’re trying to help your business grow.Business insurance helps you cover costs associated with property damage andliability claims, and will prevent you from paying high out-of-pocket costs fordamages and potential lawsuits. Essentially, business insurance will protect youfinancially in the event of a potentially devastating event. But what kind ofbusiness insurance should you have? Every business is different, but the bottom line is this: You need businessinsurance in one way or another. There are many business insurance varietiesavailable, so there are certain things you need to ask yourself when consideringwhat type of insurance to get. You need to consider: the kind of work you do,what kind of physical property you have (if any), equipment, intellectualproperty, and your employees and customers. Below, we get into the basics of business insurance, what you’re required tohave, and an overview of some of the top insurance coverages available to you. What are the basic insurance needs for small businesses? Most businesses are required to have a Businessowners' Policy (BOP), which isspecifically designed for small businesses. It includes business property andgeneral liability coverages and offers broad coverage for a low premium. In aBusinessowners’ Policy, you can customize your specific coverage based on whatyou specifically need for your business — like coverages for your employees,physical property, etc. What other business insurance policies are required? There are dozens of types of insurance policies available, and they may not allapply to your specific business needs. In almost every state, there are basicinsurance coverages required for employees to work for you, such as workers’compensation and unemployment insurance, which we’ll get into later. What happens if I don’t have insurance? When you don’t have business insurance, you’re putting your business at risk offinancial devastation. One accident could mean you end up paying thousands — ifnot more — out of pocket to cover the costs. This could result in closing thedoors of your business for good. Top insurance coverages:Excess Liability Excess liability coverage is a policy issued to provide limits in excess of ageneral liability policy. For instance: If you submit a claim to your insurancecarrier that’s over your underlying liability policy, the excess liabilitypolicy will pick up the rest. This type of coverage is an added layer ofprotection from your primary liability insurance, but it’s important to notethat it does not provide additional, separate coverage. All businesses need atleast general liability insurance, but depending on your business’s size, youmay way to consider excess liability insurance for added protection.Workers’ Compensation Workers’ Compensation provides wage replacement, rehabilitation costs, andmedical benefits to employees who become hurt or sick due to their job. Thistype of coverage is mandatory for all businesses, and the wage and medicalbenefits vary depending on what state you’re in. Workers’ Compensation isconsidered social insurance because it relies on a social contract between youand your employees — in exchange for your coverage of their injury on the job,you are protected from any potential civil lawsuits. This type of insurance ismeant to protect both employees and employers, so make sure to look at therequirements in your state.Property InsuranceIf your business has a physical location and equipment like computers andinventory, a policy that covers your business in the event of a fire, theft,smoke damage is something to consider. This will help protect you from financiallosses in the event of an emergency. Business IncomeBusiness income insurance, also called business interruption insurance, coverslost income when you have to stop business suddenly. Some examples include fire,theft, or other emergencies that would cause your business to close temporarily.Business income helps keep you afloat while you repair damages and will help payyour lost income. It serves as an extra layer of protection beyond commercialproperty insurance. Employee DishonestyThis type of coverage protects you from fraud and embezzlement by employees.This type of coverage is sometimes referred to as fidelity bond, crime coverage,or crime fidelity. It protects you in the event of fraudulent acts conducted byan employee. These acts can include forgery, credit card fraud, alteration,unauthorized fund transfers, computer fraud, money order fraud, and counterfeitfraud.