Types of Business Insurance


Business Insurance
Business Insurance

The right types of insurance for businesses

There are many types of insurance options that business owners can get. Insurance helps protect your company from various risks that may come up during normal operations. Choosing which business insurance you need may seem overwhelming, but we're here to help.
Business insurance
Business insurance

Many business owners start with a business owner policy (BOP) for their small business insurance needs. It combines three essential coverage:
  1. General liability insurance
  2. Commercial property insurance
  3. Business income insurance
We've made our BOP customizable so you can add other business insurance coverage to get more protection. For example, if your business provides professional service to customers, you may want to obtain a professional liability insurance policy. It can help protect your business from claims that it has made a mistake in the professional services it provides.

We know that every business is different. That's why we're here to help you get the right kind of business insurance.
Consider 8 types of insurance policies for small businesses
You have to get different types of insurance depending on the industry you are in. That is because every business faces unique challenges and risks.

While there are many types of insurance that you can get, read about eight policies that can help protect many small businesses from a variety of risks.

1. General Liability Insurance (GLI)

General liability insurance helps protect your business from claims caused by:
Physical injury to someone else
Damage to another person's belongings
Personal injury, such as defamation or slander

2. Commercial property insurance

Commercial property insurance helps protect the building and equipment you own or rent that you use to run your business.

Be aware that this insurance does not cover damage caused by earthquakes or floods. You will need to get a separate policy, such as commercial flood insurance, to help protect your business from such claims.

3. Business income insurance

If you are unable to run your business due to the loss of covered property, business income insurance can help replace your lost income. Therefore, you can use this coverage to help pay for ongoing expenses, such as rent, utility bills or payroll. This type of insurance is also known as business intervention insurance.

4. Professional liability insurance

Professional liability insurance helps cover a lawsuit claiming you made a mistake in the services you provided. This type of insurance is also known as error and omission (E&O) insurance.

5. Workers' compensation insurance

Workers' compensation insurance benefits your employees if they lose their job or get sick. These benefits can help:
Pay for their medical bills
Replace most of their lost wages if they miss work to recover
Covers funeral expenses if they lose their life due to work-related injury or illness
Pay for ongoing care such as physical therapy
Most states require businesses with workers 'workers' compensation insurance. You could face fines, penalties and criminal charges if you do not follow the laws of your state.

6. Data breach insurance

Data breach insurance helps your business respond to data breaches if personally identifiable information is lost or stolen. Some insurance companies may call this coverage cyber insurance.

Data breach insurance can help pay for your expenses:
Notify affected individuals
Provide identity theft monitoring services
Create a public relations campaign

7. Commercial Umbrella Insurance

Commercial umbrella insurance extends the coverage limit for some of your liability policies. Therefore, if the claim exceeds the limit of your policy, your umbrella insurance can help cover the difference.

8. Commercial Auto Insurance

Commercial auto insurance helps protect you and your employees on the road if you drive company owned vehicles for business. It can help cover property damage and bodily injury claims from an accident caused by your business. This is important because a personal car insurance policy will not help cover a third-party claim in an accident involving a vehicle owned by your business.

Small Business Insurance Requirements What are the different types of insurance?

Depending on the type of business you have and where you are, the law may require you to take out certain types of insurance. For example, in most states employers are required to have workers' compensation insurance. Some states have laws for business insurance by industry. For example, accountants have to get professional liability insurance.

It's important to make sure you're familiar with your state's business insurance laws. You can work with an insurance agent to make sure you are following the rules. They can help you customize the insurance policy to suit your needs and budget.
Get recommendations on the types of business insurance you may need
It is important to get the right type of business insurance wherever you are with your business. It can give the star a good foundation when they first open their doors. And it's also important for experienced business ownersComplete, because, depending on your business and your insurance types, policy requirements may change over time.

We are an insurance company backed by over 200 years of experience and we have helped over 1 million small businesses. Our experts want to do the same for you. We can work with you to find the types of business insurance your company needs. Get a business insurance quote today and find out how we can help you.
Source: thehartford.com for informational purposes only.

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