Business failures are not the only worry for business owners. They also have to worry about getting sued if someone’s hurt their property or if they damage their property. The worst part is that lawsuits can rack up a lot of legal fees that could ruin a small business owner.

With that in mind, you will want to buy some kind of business insurance policy to make yourself whole.

In this article, we will go over the basics of different types of business insurance policies. This is for you to better understand which policies you need for your business. Read on!

Workers Compensation Insurance

It is a system of insurance that provides benefits for an employee who’s hurt or becomes ill as a result of their job. Benefits can include medical expenses, income replacement, and death benefits.

Employers are also typically required to carry workers’ compensation insurance.

Product Liability Insurance

It provides protection to a business against claims arising from products that the business has manufactured or sold. It is also a good choice for individuals who wish to protect themselves against the risk of being sued for damages caused by product defects.

Product liability insurance can help businesses cover the costs of legal defense, settlement, and judgments, as well as any other related costs.

Professional Liability Insurance

It is also called Errors and Omissions insurance. This protects businesses and professionals from claims arising from errors or omissions in the course of their work.

This type of insurance can cover damages resulting from negligence, wrongful acts, or even accidents. It can help businesses and professionals to protect themselves from financial damages that may result from claims alleging that they failed to provide adequate services or that they caused some type of harm.

Property Insurance

It provides protection against losses caused by events that can damage property. The common types of property insurance include:

• Homeowners Insurance
• Renters Insurance
• Business Insurance

It can cover the cost of repairs or replacement for the physical structure of the property, as well as the contents of the property.

Business Interruption Insurance

It is a type of insurance that helps protect businesses from lost income due to business interruption.

A business interruption is a period of time when business operations are interrupted. This can be caused by many things, including natural disasters, power outages, and equipment failure.

It can help cover lost revenue as well as necessary operating expenses that continue even when the business is unable to generate income. It can also help them protect their bottom line in the event of an unexpected interruption.

Commercial Property Insurance

It covers the buildings and contents of a business. This can include protection against fire, theft, and damage from weather events. It can also cover the business equipment used by the company.

It can be critical for businesses of all sizes, as it can help to protect against the financial losses that can occur when there’s damaged or destroyed property.

General Liability Insurance

It’s an insurance that businesses sale to protect themselves. This serves as protection from claims that might be brought against them by customers or other third parties.

The coverage can extend to defend against both personal injury and property damage lawsuits. It will also pay for any resulting damages that are awarded.

This insurance is a way to protect themselves against the costs of litigation, which can be significant.

Data Breach Insurance

In the event of a data breach, notification to individuals is required by law in many states. This can be a costly notification process, and many companies elect to purchase data breach insurance to help offset these notification expenses.

It provides first-party coverage for business interruption, cyber extortion, and data restoration. Also, some policies provide third-party coverage for damages arising from a data breach, such as privacy invasion claims or class action lawsuits.

Commercial Umbrella Insurance

A commercial umbrella insurance policy is an insurance policy that provides coverage above and beyond the limits of your underlying commercial liability policy.

It can protect your business from catastrophic losses due to claims or lawsuits. Commercial umbrella insurance can also be a valuable tool to help protect your business from financial ruin.

Commercial Auto Insurance

This is insurance coverage for vehicles that are used for business purposes. This can include vehicles that are used for deliveries, transporting goods, or traveling to multiple work locations.

It typically has higher coverage limits than personal auto insurance and may also include additional coverage options such as business interruption insurance.

Key Employee Insurance

A key employee is someone whose death or disability would have a significant negative impact on the company. It is a life insurance policy that a company takes out on a key employee.

The death benefit is paid to the company, which can use to cover the costs of finding and training a replacement or to cover other expenses related to the key employee’s death.

The policy can also provide a financial cushion in the event that the key employee is unable to work for a prolonged period of time due to a disability.

If you don’t know how to choose the best insurance for your business, click here for your guide to understanding business insurance.

Learn The Different Types Of Business Insurance Today

There are many different types of business insurance coverage, and the right policy for your business will depend on your specific needs. Be sure to talk to your insurance agent to determine what type of coverage is right for your business.

Did you find this article helpful? Visit more of our blogs!