Business insurance can assist in covering the costs of property damage, lost revenue, lawsuits, and other covered losses. Businesses frequently purchase numerous coverages and combine several into one policy to assist protect against specific hazards particular to their circumstances.
Various company insurance plans address various hazards. Generally speaking, business insurance can protect against risks related to consumers, employees, property, and motor vehicles. A policy (or a number of policies) that offers the coverage is available for each group.
The most common types of business insurance coverages are:
Table of Contents
- 1. Property Insurance
- 2. Professional Liability Insurance
- 3. Product Liability Insurance
- 4. Business Interruption Insurance
- 5. Commercial Vehicle Insurance
- 6. Business Interruption Insurance
- 8. Liability Insurance
- 9. Commercial Auto Policy
- 10. Workers’ Compensation Insurance
- 11. Data Breach Insurance
- 12. Commercial Flood Insurance
- 13. Commercial Umbrella Insurance
- 14. Cyber Liability Insurance
- Final Thought
1. Property Insurance
This type of coverage can assist protect your business property from damage or theft. Business personal property insurance covers the business’s buildings, furniture, equipment, inventory, and other movable property owned by your business. It may also extend to cover valuable papers and documents.
2. Professional Liability Insurance
This type of coverage, also called errors and omissions insurance, can assist protect your business from claims of professional negligence. If you or one of your employees makes a mistake that causes financial harm to a client, professional liability insurance can help cover the resulting damages and legal expenses.
3. Product Liability Insurance
If you manufacture, distribute, or sell products, you may need product liability insurance to help protect your business from claims of injuries or damage caused by your products.
4. Business Interruption Insurance
If your company must shut down or reduce operations as a result of a covered catastrophe, such as a fire or severe weather, this sort of coverage may be able to assist you get reimbursed for missed income and expenses.
5. Commercial Vehicle Insurance
If your business uses vehicles for deliveries, sales calls, or other purposes, you’ll need commercial vehicle insurance to help protect your business from the costs of accidents or damage caused by your vehicles.
6. Business Interruption Insurance
Also called business income coverage, this type of insurance can help your business recover from lost income and extra expenses incurred if your business is forced to close or scale back operations due to a covered loss.
8. Liability Insurance
If your business is sued or held legally responsible for someone’s injury or property damage, liability insurance can help cover the resulting costs, including attorney fees and judgments.
9. Commercial Auto Policy
Commercial auto insurance can help cover the costs of accidents or damage caused by your business vehicles.
10. Workers’ Compensation Insurance
This type of insurance is required in most states if you have employees. It can help cover the costs of medical treatment and lost wages for employees who are injured or become ill as a result of their job.
11. Data Breach Insurance
This type of coverage can help your business recover from the costs of a data breach, such as notification and credit monitoring expenses, legal fees, and lost business income.
12. Commercial Flood Insurance
If your business is located in a flood zone, you may be required to purchase commercial flood insurance. This type of coverage can help reimburse you for lost income and expenses if your business is forced to close or scale back operations due to a flood.
13. Commercial Umbrella Insurance
This type of coverage can provide extra liability protection for your business above and beyond the limits of your other insurance policies. operates as a safety net that offers extra protection when other liability plans’ limitations are reached.
14. Cyber Liability Insurance
If your business stores customer data electronically, this type of insurance can help cover the costs associated with a data breach, including notification, credit monitoring, and identity restoration services for affected customers.
These are just a few of the most common types of business insurance coverages. Be sure to talk to your insurance agent or broker about the specific coverages you need for your business.