The Different Types of Business Insurance

If you own or manage a business, it is important to have business insurance for protection against losses from accidents, mistakes, employee misconduct, employee injury, and other liabilities. While most states require business owners to have general liability insurance, there are several other types of business insurance that are equally as important. Given that every business is unique, there is no “one size fits all” insurance policy when it comes to business insurance. For this reason, it is helpful to become familiar with the different types of business insurance so you can decide which is right for your business. Here we will take a look at some of the most common types of business insurance. 

General Liability Insurance

As mentioned before, this type of insurance is required by law in most states. This insurance protects you from business operations-related claims. This would include injuries to employees or customers that happen on your property, damage to someone’s property or belongings, as well as personal injury from slander or defamation. General liability coverage is a good idea for most businesses that operate a location, visit client properties, or operate any kind of office or warehouse. 

Product Liability Insurance

Product liability insurance protects you from claims that may arise from the products you sell. If a customer claims that one of the products you manufactured, sold, or distributed caused them injury or damaged their property, this insurance would cover the cost of any legal fees and damages that might be awarded. This insurance is recommended for raw suppliers all the way through end retailers. 

Workers’ Compensation Insurance

Workers’ compensation insurance provides coverage for medical expenses and lost wages that may be incurred if an employee is injured on the job. These benefits can even cover funeral costs if someone loses their life due to a work-related illness or injury. This type of insurance is also required in many states. 

Commercial Property Insurance

Similar to a homeowner’s policy, commercial property insurance protects you and your business property from losses due to fire, theft, or other damage. This is generally paired with general liability insurance and is a wise decision for businesses that rent or own a property. 

Professional Liability Insurance

Professional liability insurance protects businesses from the cost of damages or injuries that result from professional services. This includes claims due to negligence, misrepresentation, bad advice, or any other losses that occur as a result of the services you provide. Accountants, lawyers, writers, photographers, designers, and consultants are examples of professional businesses that should consider professional liability insurance. 

Commercial Auto Insurance

Commercial auto insurance helps protect you and your employees if you drive company-owned vehicles for business. If you or one of your employees is involved in an auto accident, this insurance will cover the cost of any medical expenses and lost wages in addition to repairs or replacement cost of the vehicle. 

Cyber Liability Insurance

Cyber liability insurance protects you from any damages that may be incurred if there is a data breach and personally identifiable information gets lost or stolen. This can help pay your costs to notify impacted individuals, offer identity theft protection, and even create a public relations campaign to address the breach.