7 Types of Insurance You Need to Protect Your Business

Hoffman Hanono
November 20, 2022

Commercial or business insurance, like other forms of insurance, is a risk management system that can protect you and your business from financial loss in the event of a crisis or accident.

Business insurance is multi-faceted because different types of insurance cover different things. When running a business, you have a multitude of liabilities you have to consider, from employee to legal.

Here are seven types of insurance you need to protect your business.

1. General Liability Insurance

General liability insurance provides coverage for the following:

  • Bodily injury claims
  • Property damage
  • Personal injury
  • Advertising injury
  • Medical payments
  • Damage to your rented premises

While other types of insurance will depend on your industry and specific needs, general liability insurance is crucial for nearly every business owner.

2. Business Owner’s Policy

A business owner’s policy combines general liability insurance with property coverage. A BOP helps cover the following:

  • Customer injury
  • Property damage
  • Commercial building coverage
  • Business interruption coverage

A BOP does not, however, cover your employees.

3. Employment Practices Liability Insurance

This type of insurance protects you against your employees.

EPLI can protect against claims for:

  • Wrongful termination
  • Sexual harassment
  • Breach of contract
  • Discrimination

Depending on your insurance provider, you can purchase EPLI separately or as part of your BOP.

4. Professional Liability Insurance

This type of insurance is also known as errors and omissions insurance. It protects businesses that offer certain professional services.

Professional liability insurance can help protect you against customer claims that your services caused bodily injury or financial distress.

5. Product Liability Insurance

Product Liability insurance protects your business in the event of one of your products causing injury or damage to a third party.

6. Commercial Auto Insurance

This is similar to personal auto insurance policies. Commercial auto insurance protects your cars, vans, and service vehicles.

This type of insurance can also cover the following:

  • Hired-vehicle coverage
  • Property and liability trailer exposure
  • Loading and unloading exposure
  • Non-owned vehicle coverage

This type of insurance is essential if you use vehicles for business purposes.

7. Workers’ Compensation Insurance

Workers’ comp covers medical costs and a limited portion of lost wages if one of your employees suffers a work-related injury or illness.

If your employees accept workers’ comp, they forfeit their ability to sue you. This insurance is usually required by law.

Finding the Right Types of Insurance to Protect Your Business

Ensuring your bases are covered as a business owner can seem overwhelming. Fortunately, dozens of types of insurance can help protect you, your business, your investments, and your assets.

The best way to determine the right types of insurance to protect your business is to sit down with a commercial insurance professional.

These professionals evaluate your industry and the ins and outs of your business to ensure you have optimized protection in the event of a disaster, injury, or economic downturn.

Contact the insurance experts at Hoffman Hanono to learn more about the types of business insurance coverage you need.