Types of Business Insurance

By Erik Neilson , last updated July 6, 2011

For many business owners, the stress of keeping a business afloat is often overwhelming. As a result, one of the most important things you can do as a business owner is to ensure that you are covered by the proper types of insurance. There is insurance coverage available for practically any type of situation that might serve to jeopardize a business, making it possible for you to rest easy knowing that you’re covered in case something goes wrong. Navigating the world of business insurance can be quite difficult for those who are new to running a business. Once understood, however, it becomes quite apparent how important it is to have the right types of business insurance.

General Liability Insurance

General liability insurance is perhaps the most important type of insurance that a business owner can purchase. General liability covers a wide variety of situations, including accidents and negligence claims. Medical expenses, property damage and having to defend a lawsuit can all add up to a great deal of money. With general liability insurance in place, however, your business will be protected from having to deal with such problems.

Home Business Insurance

Many people who work out of their homes don’t think that they need to have any insurance for their business. The fact is, homeowners insurance is often mistakenly thought to cover any business losses that happen within the home, yet there is actually no truth to this myth. As a result, anyone who runs their business from home should consider purchasing home business insurance.

Property Insurance

Property insurance is an important type of business insurance that sometimes goes overlooked. Anyone who has an office space with a great deal of money invested in it is a candidate for property insurance, as if fire, water damage or other problems were to occur, nothing else would cover it. Once implemented, property insurance covers practically any type of damage that occurs to your property, and can be a life-saver in the case of an emergency.

Product Liability Insurance

If your company manufactures products for the general public, you may be reliable for any issues that arise from the product’s use. As a result, it is wise for businesses that manufacture products to have product liability insurance in place at all times. Product liability insurance will protect you in the case that an accident or other mishap occurs that involves your product. As lawsuits are very common in such situations, product liability insurance can often mean the difference between a company that survives a bump in the road and one that is forced to fold given a mishap.

Professional Liability Insurance

If your business provides a specific service (such as marketing or advertising), it is highly recommended that you purchase professional liability insurance. This type of insurance will cover you in the case that you make an error or omission that ends up being a costly mistake for your client. Lawsuits often happen as a result of this type of issue, making it extremely important to have insurance behind you.

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