Protection against loss is critical for everything you do, including running your own business or earning money from a side hustle. The primary tool for mitigating business risks, such as those described by Wealth of Geeks, is property and casualty insurance.
Some small businesses buy a package policy, called a business owners policy (BOP), to cover their vehicle, liability, and property exposures. It is similar to the combination of personal auto and homeowners insurance policies.
Property coverage protects against a long list of perils, including fire, hurricane, tornado, vandalism, and theft. In many places, you must purchase earthquake or flood coverage separately.
An umbrella policy allows you to increase the limits of liability on all your liability policies at once. An umbrella policy can provide coverage for vehicles, Prem/Ops, and products liability.
Professional liability insurance protects you against claims that you have caused someone an economic loss by making a mistake when providing professional services.
Workers’ compensation insurance (often called workers comp) protects you against the cost of injuries and illnesses to employees during their employment.
Fidelity bonds protect an employer against the fraudulent or dishonest actions of its employees.
If you sell a product, you might need to look into purchasing crime insurance.
Cyber insurance can cover your operations if a cyber-attack disrupts them. It also can protect you if your confidential business and/or your customers’ or employees’ personal information is stolen electronically.
D&O insurance covers economic losses incurred by third parties that result from significant decisions made by directors or officers.