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Small business insurance comes in many shapes and sizes. More than just workers’ compensation and protection against theft, property damage and liability, it can be tailored to your company’s unique needs.

Let’s say that you have a business that makes extensive use of mechanical equipment. If so, you need a policy that protects against the breakdown of that equipment, and that’s where mechanical breakdown coverage comes in. Adding this to your property insurance policy will cover you if any of your equipment, including computers, ceases to function. If, for example, your computers were damaged in a fire, this insurance would reimburse you for business interruption costs.

What if you have a construction business and are right in the middle of a project when a tornado sweeps through the area, destroying everything you have built? If you have builder’s risk insurance, the cost of your half-completed building will be covered. This is one of the types of commercial insurance that might seem like an extra expense you don’t need. But should the worst happen, you would definitely be glad you had it.

Although builder’s risk insurance is only necessary for certain enterprises in the construction industry, business interruption coverage is beneficial for virtually all businesses. That’s because it covers the cost of net profits, taxes, rent and salary during the time that you must close down your shop due to property damage, theft or some other cause. For many merchants who are struggling to make a profit each week, obtaining this coverage can truly be a life-saver should the worst happen and your company be closed for weeks or months.

If your company provides services such as tax preparation or the giving of legal advice, you also might want to seriously consider obtaining errors and omissions coverage. This protects you in the event that you or one of your employees makes an inadvertent mistake that ultimately causes injury to a third party. It should be noted that the mistake that was made must not simply be due to poor judgment nor can it be an intentional act.

Among types of commercial insurance, malpractice coverage, also known as professional liability, is a must-have for professionals such as architects, dentists, doctors, lawyers and accountants. It pays for losses to third parties if they are injured as a result of sub-standard conduct on the part of the professional. If you are a doctor and you make an error that falls below the standard of care provided by others in your field, the policy will cover the costs of a lawsuit and any damages that you are charged.

If you use vehicles as a part of your commercial enterprise, you also need automobile insurance. It covers your cars, trucks, vans and trailers in the event that they are damaged or stolen. Furthermore, they pay the costs if the driver injures someone in the course of a business-related trip.

As you can see, commercial policies come in many forms. Talk to your agent to learn about how the different options might protect you and the business you have worked so hard to build.

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