What is Business Insurance
Business insurance protects you from expenses that can take you by surprise after an accident or mistake involving your business property, your employees or your customers. It’s sometimes called commercial insurance.
The idea of small business insurance is simple:
- You pay a set amount for your coverage (this is known in the industry as an insurance premium).
- In return, you may be able to avoid paying a much larger amount after an accident or mistake.
What are different types of Business Insurance
Business insurance typically involves a package of different types of coverage — what the insurance industry calls policies.
For example, someone could slip where you are working and claim the injury is your fault. In that case, you’ll be glad you have general liability insurance to help pay for medical costs so you don’t have to pay out of pocket.
General liability insurance is typically the first kind of insurance bought by business owners as it also helps your business cover the costs if you or an employee accidentally damage someone’s property.
But general liability is just one type of business insurance coverage.
You might need to expand your insurance package to protect yourself from financial losses. For example:
Commercial property can help protect almost all of the physical items you need to do business. It can pay for replacement costs for your business equipment, goods, inventory and repairs to your building (if you own it) up to your policy limit.
Business owner’s policy (commonly known as BOP insurance) combines general liability insurance and commercial property insurance into one package that includes all the coverage available in those two types of insurance.
A BOP is a comprehensive way to protect your business from unexpected expenses related to property damage, medical payments and lawsuits.
Workers’ compensation insurance covers workplace injuries.
If an employee gets hurt on the job, it can pay for medical expenses and help cover lost wages. You can also cover yourself if you opt for business owner’s coverage.
It’s almost always required when you have employees.
Commercial auto insurance is for business owners who own or drive vehicles. It can help pay for damages if you or an employee are involved in an auto accident while working or your work vehicle is damaged.
Professional liability insurance can help protect you from claims of work mistakes or negligence. This coverage is also known as errors and omissions (E&O) insurance.
We know it can be difficult to sort out what coverage you need for your business. That’s why we developed a super fast online business insurance quote process.