Multiple types of business insurance may benefit your company. Some suit every type of business, but others are better suited to specific types of companies. You’ll read about the various types of insurance for your business below, and the information should help you determine which type of insurance is most suitable for your needs.
Table of Contents
7 Types of Business Insurance You May Need
1. General Liability Insurance
Every business should invest In general liability insurance. It will provide you with protection against the most common types of incidents such as personal injuries and property damage. A customer or client who experiences an injury on your property can devastate your business if you don’t have the right insurance.
Without general liability insurance, then you’ll have to pay for their medical bills, emotional suffering, lost income, and more, out of pocket. Doing so will put most small companies out of business. You may also hear this type of insurance referred to as Commercial Liability Insurance.
2. Professional Liability Insurance
Sometimes you or your employees may make a mistake while providing your professional services. For example, an accountant making a mistake on a client’s report can lead to the client having to pay a penalty. The client may then sue the accountant’s business. You need professional liability insurance to cover you if you’re sued for a professional mistake.
3. Business Income Coverage
If your property is damaged, then you may find yourself unable to operate your business. If you have business income coverage, then it can help you replace any lost income you’d be earning if your premises were not damaged.
4. Commercial Property Insurance
Ideally, you’ll want to protect the building in which you operate. This applies to both owned and rented properties and equipment. Commercial property insurance will cover you if somebody decides to break into your premises and steal your equipment. It will also cover any damage they cause to the property itself.
5. Workers’ Compensation Insurance
Your employees are entitled to benefits if they become ill or injured due to their work. Workers’ compensation insurance is mandatory for businesses in California with at least one employee.
If an employee becomes ill or injured, then your business is essentially responsible for paying for their treatment, lost income, and emotional damages. Your insurance will cover this payout.
6. Commercial Auto Insurance
Do you make deliveries or long trips when operating your business? If so, then you should have commercial auto insurance. This covers you if one of your employees gets into an accident while driving a company-owned vehicle on a business trip or delivery.
7. Business Owner’s Policy
Some policies combine different types of insurance. A Business Owner’s Policy will provide you with General Liability Insurance, Business Income Insurance, and Commercial Property Insurance as part of one insurance plan.
The seven types of insurance above are just a few of the types of insurance available to your business. Make sure you protect yourself and your employees by getting the various types of insurance that are suitable for you and your company.