6 Popular Types of Insurance for Businesses

I nsurance can help cover just about any risks that would come with your business. Especially for a new business, it's important you insure every problem it may face with a reliable insurance company. To start, we are sharing a few main types of insurance for businesses you can begin with.

Business Insurance Types 

Here are the most popular business insurances that you should be aware of:

Business Interruption Insurance 

When something terrible happens at work such as a fire, a natural disaster, or even an executive kidnapping, company operations get put on pause and workers are unable to come in or do their work. In such a situation this insurance will cover all the profit you would've made in those missed days. This insurance is mainly for those that need a location to work such as restaurants or grocery stores. This, however, does not cover physical damage and for that, you will need commercial property insurance. 

Commercial Property Insurance 

As I mentioned, in the case of a fire or any other disaster this will cover all the physical damage done to all your equipment and property. With business interruption insurance and commercial property insurance, you will practically be invincible against most disasters. Of course, if your business is home-based and you don't have an office then this won't be anything that can help you. If this is the case you should ask your insurer for additional coverage for any and all equipment you may use for your business at home.

Workers' Compensation Insurance 

Failing to purchase workers’ compensation is illegal in many states and even death on the job will be compensated to the surviving parties. This will also protect you as punishable up to a year in jail and/or a fine of $10,000 or more. So depending on the state you are planning to start a business you should definitely get workers’ compensation as soon as possible. This will cover the medical bills of workers who have gotten into a work related accident or gotten hurt on company premises. And your worker, upon being compensated, will not be able to sue you but of course, this isn't about you but the safety of your workers.

Errors And Omissions Insurance

Also known as professional liability insurance, will cover the legal fees in the case that you or your employee makes a mistake that gives your client a reason to sue. Each business usually has its own set of risks and concerns so each policy will be written to fit the business’s needs. This will protect you and your business from negligence and malpractice your clients or customers may face. Depending on your profession, you may be required to get professional liability insurance.

Product Liability Insurance 

If you manufacture and sell products then you absolutely must be covered by this. Product liability insurance covers financial loss due to any legal liability claims brought up by a consumer due to injury, sickness, property damage, or even death caused by your product. The amount of coverage you need will depend on what kind of business you may run. For example, a clothing store will not need as much coverage as perhaps a drugstore.

General Liability Insurance 

This covers legal fees in the case that you are being sued for negligence, harm, etc. it will cover settlement bonds and the cost of lawyers and medical fees. Now, this does not cover the employees or people who harmed themselves intentionally for the payout. That is illegal.   

In a word, you need to make sure that before you move forward with your business, you are fully insured. There is business interruption insurance that covers any business lost during a fire or a disaster or in a case where workers are unable to come in to work. Then there is commercial property insurance which will cover any physical damage done in the case of a fire or other disasters. Workers’ compensation will cover medical bills caused by work-related accidents which protects you and also your workers. 

This brings us to the end of our post on types of insurance for businesses. Professional liability insurance takes care of all legal fees that come after being sued for malpractice or mistreatment. Product liability insurance will protect you in the case that your product harms a consumer. It will cover all the financial loss caused by legal liability claims. These are the basic types of insurance for businesses that will protect you from some of the common mishaps that may happen in business so you can rest easy knowing your business is protected. 

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