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10 Key Types Of Business Insurance To Consider

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Credit DocuSign / Unsplash

by Contributing Author

When it comes to business insurance, it is better to be safe than sorry. There are all kinds of different threats and issues that can arise for companies in many different industries, and having protection in place in the form of insurance is vital. Smaller companies, in particular, may be forced to fold without sufficient protection in place due to the costs involved. So, what are a few of the essential types of insurance for your business? It will depend on your industry and the kind of work you carry out, but read on for a few of the main types of insurance you most need to keep your business protected.

1. General Liability Insurance

General liability insurance is a key type of cover because it protects you financially against a number of common threats that many different types of businesses face. General liability insurance can provide financial protection against bodily injury, property damage, court and legal fees, libel, slander, defamation, and medical payments. If you are not responsible for some of the most common accidents that happen in a business or if you are forced to defend yourself, you will want general liability insurance to provide financial protection.

2. Workers’ Compensation Insurance

Every business needs to look after its employees, and this is only possible with workers’ compensation insurance. Workers comp can cover any associated costs of a workplace injury, such as lost wages, medical expenses, retraining, and employers’ liability to protect yourself if you end up in court after a workplace injury.

3. Professional Liability Insurance

In the business world, mistakes happen, and disagreements can occur. Sometimes, these can prove costly, so you need to have professional liability insurance in place. This type of cover provides financial protection if you are accused of a mistake that costs a customer money or if you are accused of negligence.

4. Commercial Property Insurance

Commercial property insurance is another essential type that can protect you with financial cover for all of the things that you need to do your business. Commercial property insurance can cover the property itself, inventory, business goods, and gear and equipment breakdowns. On top of this, commercial property insurance can provide business income interruptions cover in case you need to close for a reason outside of your control (and covered in the policy).

5. Commercial Auto Insurance

If you or an employee is involved in a car accident in a company vehicle, commercial auto insurance can provide protection. This can cover medical bills, property damage, damage to your vehicle, legal fees, or expenses for claims related to emergency care. Keep in mind that if you are using a vehicle for business-related purposes, your regular car insurance will not cover you, so you need to have commercial auto insurance in place for any vehicle used for work.

6. Cyber Insurance

In today’s day and age, cybercrime is a major and growing issue. Cybercriminals target businesses of all sizes and in all industries and attacks are becoming increasingly advanced. There has been a sharp rise in digital attacks during COVID-19, and businesses need to do all that they can to protect themselves and their data. Cybersecurity products and staff training are key, but organizations should also have cyber insurance in place. Cyber insurance can cover the losses relating to the damage caused by a cybercrime attack. A cyber attack can cause significant financial and reputation damage that can seriously put your business at risk, so it is vital that you have sufficient cyber insurance in place.

7. Product Liability Insurance

If your business makes products, you need to make sure that you have product liability insurance in place. Essentially, this type of cover will cover compensation costs if anyone is hurt using a product you designed, supplied, or repaired. Issues relating to products can be common, and having product liability insurance in place could prevent you from being seriously out of pocket if someone hurts themselves using your product.

8. Home-Based Business Insurance

These days, many people have home-based businesses, and it is important to be aware that a general homeowner’s insurance policy will not cover business-related losses. Therefore, those that have their own business at home will want to take out home-based business insurance to cover certain risks, such as general and professional liability.

9. Management Liability Insurance

There is a lot of pressure and responsibility that falls on the shoulders of directors and officers. While this has its perks, there are also risks, and claims made against you could be costly. Management liability insurance protects directors and officers from claims made against them, such as negligence or a health and safety matter at work.

10. Self-Employed & Sole Trader Insurance

Many people are self-employed and have their own business these days, and it can bring a range of perks. While there are perks to being your own boss, there are also certain risks that you need to be aware of. You can get a tailor-made self-employed or sole trader insurance policy for your specific business that will help provide important financial protection against the risks you face in your business.

These are a few of the main types of insurance that most businesses need. There may be others depending on your line of work, which is why it is important to research and ensure that you have sufficient coverage in place. This will provide key financial protection, but it will also help you to go about your business each day with confidence. There are many threats, issues, and problems that arise in the business world, and many of these have the potential to be costly and could cause serious issues for your business. Having sufficient insurance in place will stop these issues from interfering with your business and could be vital for staying afloat if your business ever encounters a serious issue. These ten options may seem like a lot to have. However, despite all of them being useful, you will only need a handful depending on your situation, making getting this insurance a lot more manageable.

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