Different Types of Business Insurance Options

Businesses can have certain risks and insurance can help with those risks. One lawsuit can be enough to destroy a small business. There are a number of different business insurance coverage options that can be needed for your business. Even if you are operating a business from home, you still need some insurance to stay protected.

Liability Insurance:

There are different kinds of liability business insurance coverage depending on your business. Professional liability insurance is known as errors and omissions insurance and can help protect a business against negligence claims due to damages that result from failure to perform or mistakes.

There isn’t a one-size-fits-all policy for professional liability and each industry will have its own set of risks that should be addressed with a custom policy. For businesses that have products, there is product liability insurance.

While every business takes measures to ensure products are safe, sometimes there can be a lawsuit related to damages that are caused by a product. This works to protect a business and the coverage is tailored to a specific type of product.

Workers Compensation Insurance:

For businesses that have employees, even part times ones, workers compensation insurance should be added. This insurance covers medical treatment, death benefits, and disability payments if an employee is injured or dies as a result of an accident with the business.

Even if your business has employees working in low-risk jobs, even medical problems such as carpal tunnel syndrome can result in expensive claims.

Property Insurance:

Whether or not a business owns or leases the space, property insurance is necessary. This type of insurance covers signage, inventory, furniture, and equipment in the event of a fire or theft.

Generally, mass destruction events, such as earthquakes and floods, aren’t covered by this insurance so you may need additional coverage.