Small Business Insurance: Protect Your Company While Managing Costs (3 of 5)

4. Business Interruption Insurance

Don’t underestimate the lasting financial consequences that even short-term closures can cause. Business interruption insurance replaces lost income and helps pay ongoing expenses if your company temporarily shuts down due to a covered event. Let’s imagine if a restaurant kitchen fire forced you to close for repairs that take a couple of months to complete. A lot of staff would be forced to quit (which means having to replace them), and you’d still have to pay rent even though your business wasn’t generating any revenue. But having business interruption insurance would allow you to avoid any of these issues, as it would help with payroll, rent, and utility bills while you rebuild.

5. Commercial Auto Insurance

Any company-owned vehicles used for deliveries, client meetings, or transporting employees require commercial auto insurance. Although all states aside from New Hampshire and Virginia mandate liability coverage for all vehicles, personal auto policies rarely cover accidents involving official business use. This coverage typically includes liability for damages you cause, collision coverage for repairs to your own vehicle, comprehensive coverage for theft or natural disasters, and protection against uninsured motorists. For small businesses relying on automobiles, whether it’s cars, vans or trucks, commercial auto insurance prevents one accident from creating financial turmoil.