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The Main Types of Insurance Your Business Needs

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There are many types of insurance for businesses to consider. Managing a company comes with many unforeseen obstacles, like a global pandemic.

The Main Types of Insurance Your Business Needs

Having the right types of insurance beforehand will save your company. With so many insurance options, it can be overwhelming knowing what to pick.

We’ve listed ten important insurance options to consider. Keep reading to help you determine what you need.

General Liability

This protects your business from claims of injury, property damage, libel, and slander, or injury medical expenses. This insurance will protect your business if someone files a lawsuit due to physical, personal, or reputation damage.

Professional Liability

Professional liability protects against claims that you made a mistake in your provided service. Businesses selling products do not need to worry about this insurance as much. Physicians, lawyers, and other service-based professions are need insurance.

Product Liability

Product liability is for businesses manufacturing, selling, or distributing products. It protects your business from claims that your product caused bodily harm. A treadmill company will need more insurance than an apparel company for example.

Commercial Property

Property insurance protects your business property and equipment. “Property” here is a broad term that refers to lost income, papers, computers, physical buildings, and more, not a physical building.

Business Owner’s Policy

This is the most common small business insurance. BOP is comprehensive insurance that covers everything a business would need at a competitive rate.

Worker’s Compensation

This insurance provides employees with income and medical expenses if they are injured while on the job. It protects employers because by agreeing to these benefits, injured employees retire the right to file a lawsuit.

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Home-Business

If you are operating from home, your homeowner’s insurance isn’t enough to protect your business. It is important that business owners understand they will need extra coverage, not just their personal coverage.

Data/Cyber Breach

If you are sued for stolen personal customer information as a result of a cyber attack, this insurance will protect you. This insurance can also help set up infrastructure to protect you from a cyber-attack and create a PR strategy to avoid reputation damage.

Commercial Umbrella

Umbrella insurance extends coverage beyond the limits of your existing policies. This insurance protects your business in those abstract “what if” situations. Even if you have various types of insurance, you may need umbrella insurance.

Key Person

If your business’s success is dependent on a few key leaders, you need this insurance. Say you have a few chemists creating a marvel medicine, this insurance will protect your business as a result of their premature demise.

Choosing the Right Types of Insurance

A small business will be fine with a BOP. A larger business will need various types of insurance that will depend on the business itself.

It is advised to research and seek expert help before choosing your policy provider and kinds of insurance. Head to our insurance page for more information!

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