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3 Insurance Coverages Every Small Business Owner Needs To Know About

You’ve got a lot to check off the to-do list as a small business owner but understanding the right insurance coverages often doesn’t make it to the top of the list. Whether you’re running a medical practice or another type of business in Maryland, D.C., Delaware, or Virginia, we can match you with the right insurance to protect your operations, employees, and financial stability. 

Below, the trusted insurance professionals at Unity Insurance highlight three critical insurance coverages that every small business should consider. 

1. General Liability Insurance: Protecting Your Business from Everyday Risks

General liability insurance is one of the most important coverages that small businesses should carry. This type of insurance protects your business from claims related to bodily injury, property damage, and personal injury that could occur during your normal business operations.

Imagine a scenario where a client slips and falls on a wet floor in your office, or a contractor damages a client’s property while providing a service. Without general liability insurance, your business could be held financially responsible for medical bills, legal fees, and even repair costs. For many small businesses, this could be financially devastating.

General liability insurance typically covers: 

  • Bodily Injury: Covers medical expenses and legal fees if someone is injured on your business premises or due to your business activities.

  • Property Damage: Provides coverage if your business causes damage to someone else’s property.

  • Personal and Advertising Injury: Protects against claims of libel, slander, and false advertising.

  • Legal Defense Costs: Covers the cost of defending your business in a lawsuit, even if the claim is groundless.

This coverage is a must-have for any small business, providing peace of mind that your business is protected from some of the most common risks.

2. Cyber Insurance: Protecting Your Business Against Digital Threats

Cyber threats are increasingly common. As more businesses rely on technology to conduct their operations, the risk of cyberattacks, data breaches, and other cyber incidents has grown exponentially. No business is immune but the threat is particularly significant for small businesses which may not have the same resources as larger companies to invest in cybersecurity.

Cyber insurance is a type of coverage designed to protect your business from the financial fallout of a cyber incident. Whether it’s a data breach that exposes sensitive customer information or a ransomware attack that cripples your operations, there are some high costs associated with responding to and recovering from a cyber incident. Cybercriminals know that small businesses typically have fewer resources to devote to cybersecurity. Without cyber insurance, your business could be on the hook for expenses such as data recovery, legal fees, notification costs, and even regulatory fines.

Cyber insurance for small businesses typically covers:

  • Data Breach Response: Covers the cost of notifying affected individuals

  • Business Interruption: Compensates your business for lost income if a cyber incident disrupts your operations.

  • Legal and Regulatory Costs: Covers legal fees, defense costs, and fines associated with regulatory actions following a data breach.

As a small business insurance agency, we cannot stress the importance of cyber insurance for small businesses enough. In an era where digital threats are constantly evolving, having this coverage allows your business to quickly recover and continue to operate after a cyber incident.

3. Professional Liability Insurance: Protecting Your Expertise and Reputation

For businesses in the medical industry and other professional services, professional liability insurance is another critical coverage to consider. Also known as errors and omissions (E&O) or medical malpractice insurance, this type of insurance protects your business from claims related to mistakes, negligence, or failure to deliver services as promised.

In professions where your expertise and advice are a key part of your business, a simple mistake or oversight can lead to significant financial consequences. For example, if a medical practice fails to diagnose a condition in a timely manner or a consultant provides advice that leads to a client’s financial loss, the business could be sued for damages. Even if the claim is unfounded, the legal costs alone can be overwhelming. Professional liability insurance provides coverage for these types of claims, ensuring that your business can defend itself and cover any settlements or judgements that may arise. 

Professional liability insurance typically covers:

  • Negligence: Covers claims arising from errors, omissions, or failure to provide the expected level of care or service.

  • Legal Defense Costs: Provides coverage for the cost of defending your business in court, even if the claim is baseless.

  • Settlements and Judgements: Covers the cost of settlements or judgements if your business is found liable for damages.

Professional liability insurance is indispensable for medical and professional service providers. 

At Unity Insurance, we specialize in helping small businesses navigate the complexities of insurance. Whether you need general liability insurance, cyber insurance, or any other type of coverage, our team of experts is here to guide you every step of the way.

Contact us today to learn more about how we can help you make sure that your business is well protected against potential risks.

Speak With An Agent At Unity Insurance About Your DC, Virginia, Delaware, and Maryland Insurance Needs Today

Unity’s insurance professionals serve as your advocate from the very beginning. From selecting coverage to filing a claim, we are by your side every step of the way. At Unity Insurance, we know insurance plays a vital role in every stage of your life and business so our professionals provide guidance and support to ensure you make the right decisions regarding your insurance options. We work with clients in Maryland, Delaware, DC, and Virginia to provide the best plan for individual needs. Call 410-539-6642 to learn how the experienced insurance agents at Unity Insurance can assist you.