If you’re starting a new business, it can be difficult to know which types of insurance are right for your type of company. So, to help you get started, here’s an overview of the most common types of insurance businesses need:
Property insurance protects a business’s physical assets.
Property insurance protects a business’s physical assets. Property insurance covers the cost of damages to buildings and other structures, as well as equipment and inventory. It also covers the cost of damage to property owned by others, like cars parked on your lot or products in transit through your warehouse.
Property insurance is often combined with other types of insurance — for example, property-based liability coverage may be included in an umbrella policy that combines several types of coverage at once.
Liability insurance protects a business from claims of damages.
Liability insurance protects a business from claims of damages. It can be purchased for a specific amount, or for an unlimited amount. Liability insurance is usually purchased as part of a general liability policy, which also covers other types of damage to property and personal injury claims. The type of coverage that you purchase depends on the size and needs of your business, but some common types include:
- Product liability: This type of coverage protects against claims related to products that have been manufactured by your company, regardless of whether they were legally sold or not. It may also apply if someone gets sick while using one of your products and sues you because they believe the product was defective in some way that caused them harm.
- Professional liability: Professional liability covers losses associated with malpractice by certain professionals—such as doctors, lawyers and accountants—and can also provide additional protection against lawsuits arising out of advice given by these experts when working with clients on certain matters (e-commerce transactions are an example).
Life insurance protects a business from financial loss based on the life of employee(s) or owner(s).
Life insurance protects a business from financial loss based on the life of employee(s) or owner(s). The death of an owner can have a big impact on a business. For example, they may need to pay off debts, provide for their family, and fund retirement.
Business owners should think about their own mortality when purchasing life insurance. They should consider how long they expect the company to operate after they are gone and what will happen if it fails before then
Workers’ compensation insurance provides income and medical care for employees who are injured on the job.
Workers’ compensation insurance provides income and medical care for employees who are injured on the job. It covers medical expenses, lost wages, and vocational rehabilitation for workers who are injured on the job.
Workers’ compensation is mandatory in all 50 states—meaning you can’t opt out of it if your business has employees. However, there are rules governing how much money an employer has to pay out when an employee gets hurt on the job (and other factors to consider). To learn more about workers’ compensation laws in your state, visit our guide below:
- [State Workers Compensation Guide](https://www.businessinsurance.com/employer-services/workers-compensation)
Auto insurance provides liability coverage for vehicles used in business, as well as damage to the vehicle itself.
Auto insurance provides liability coverage for vehicles used in business, as well as damage to the vehicle itself. Liability coverage is what you need if your car is hit by another driver, or if you are sued after an accident. If someone gets hurt and sues you because of an accident involving your car, you’ll need to have liability coverage.
Liability insurance also covers any damages done to other people’s property (including their cars), or if someone gets injured while riding in your vehicle. Auto insurance isn’t just about covering yourself; it also covers others who are driving your car at any given time!
Health insurance covers the cost of care for employees who get sick or injured.
Health insurance covers the cost of care for employees who get sick or injured. It usually has a waiting period before employees are eligible, and there are several different options to choose from.
Understanding the different types of insurance you need is helpful when choosing the right type of policy for your needs
Understanding the different types of insurance you need is helpful when choosing the right type of policy for your needs.
If you’re looking for an affordable business insurance policy, be sure to look at:
- General Liability Insurance—Protects against bodily injury or property damage caused by an insured person or entity through the ownership, maintenance, use or entrustment to others of any land, building or structure. It also covers loss resulting from personal and advertising injury.
- Business Auto Insurance—Covers liability in connection with vehicles owned by your business (including leased). The “business auto” can include cars, trucks and vans that are used in the course of your business – even if they are not owned by your company (such as a contractor’s truck). It also protects against physical damage sustained by a third party while operating one of these vehicles on public roads; this coverage will kick in even if you have no other insurance on board.
Overall, it’s important to understand the different types of insurance needed and how they can impact your business. With proper coverage in place, you can sleep easy knowing that if something happens to your business, it’s covered by an insurance policy.