All about insurance coverage for small businesses during COVID-19

The information contained in this post is provided for informational purposes only, and should not be construed as advice from GoDaddy on any subject matter.

Most business owners could have never predicted the impact that the COVID-19 pandemic would have on their local economies. When cities and states started to shut down and enact restrictions, many thought it would only be for a few weeks. Now, months later, the pandemic continues – with no signs of slowing down.

During these uncertain times, your insurance policies are more important than ever. You can directly see the risks that your company faces and need to protect all the money that you can.

Let’s get to know some different types of small business insurance policies.

General liability and professional liability insurance

There are two main types of insurance that provide an umbrella of protection for your small business: general liability and professional liability.

General liability insurance covers physical injuries and property damage within your business. Worker’s compensation is covered under general liability, but it also covers your business in the event that a customer or guest is also harmed on your premises. General liability is invaluable for most businesses, protecting companies in the event of property damage, reputational harm, and advertising errors.

Professional liability protects companies from errors in their products or services. For example, if a webmaster makes an error on a website that drives down sales (or causes a company to sell items at a severely discounted rate), then the insurance will cover the cost of the mistake. Professional liability protects companies from the mistakes they make.

Many forms of business insurance will bundle both professional and general liability; however, it is important to know the differences so you understand how you are covered.

Understanding worker’s comp insurance and COVID-19

Worker’s compensation insurance protects you in the event that an employee is injured on the job. If an employee falls on a flight of stairs, the worker’s comp will cover their medical treatment and bills until they can recover.

If your business transitioned to remote work during this time, the worker’s comp still covers your team members.  As long as they are injured doing work for the company, the insurance should cover it.

That being said, there have been some debates about worker’s comp and COVID-19. This insurance typically does not cover illness like the common cold or flu. Furthermore, it is almost impossible for an employee to prove that they contracted the disease through their employment.

However, some states have taken action to protect essential workers (like healthcare providers and grocery clerks) who come down with the illness. Know your state guidelines and what worker’s comp covers in your area.

How can you make sure you are insured?

If you purchased business insurance when you first opened your doors and never reviewed your policy, now is the perfect time to learn what is actually covered. Make sure you have the amount of coverage you want and that you have enough general liability and worker’s comp coverage to protect your assets and your staff.

Even if you are happy with your insurance, shop around. It won’t hurt to get a few quotes from other companies on insurance costs and coverage. You may find that there’s a better deal out there that offers more protection or costs less.

Many insurance companies are responding quickly to the COVID-19 pandemic. Now is a good time to get better coverage or develop a new understanding of how your business will be protected should you need it.

Check out OpenWeStand‘s Resources page for more articles, advice, and strategies small businesses can use to get through these tough times.