Below are the most common types of insurance policies that a small business may need. Each of them offers a different set of protections based on the different needs of your business.
While these are not the only types of insurance that are available, they are the most frequently needed of all varieties of businesses.
General liability insurance is the most common type of business insurance, as it covers the most basic needs that are shared among all types of companies. Things like bodily injury on your business's property and physical damage caused by employees are covered by this policy. If you aren't sure which types of insurance your company needs, you should start here.
Professional liability insurance, also known as errors and omissions (E&O) insurance, is a policy that is meant to protect professionals in the workplace. Expert advice given to a client by you or your employees may not always lead to the desired result. This can leave you open to liabilities if the client is financially damaged and blames your company. This coverage is protection for you against that liability.
Workers' compensation insurance is meant to protect the interests of your employees if they are injured on the job. It can also protect your business from a lawsuit if that employee needs compensation for their injuries. Workers' comp is mandated in most states if you have any employees. Read this page to learn about the requirements in your state.
Commercial property insurance is similar to homeowner's insurance on your personal home. It protects your building and its contents against "named perils" like fire, theft, and inclement weather.
Commercial auto insurance works a lot like your personal auto insurance. If your company owns a vehicle, you are mandated by the state to carry at least the state minimum coverage to drive it on public roadways. There is some complexity surrounding what is and is not covered if you drive your personal vehicle for business use, so be sure to do your research to make sure you are fully covered.
A business owner's policy is a group of insurance policies targeted at small businesses. Normally, you will find these policies containing general liability, commercial property, and business interruption insurance. Since they are packaged and sold as one policy, this makes the administration of your protection simpler, and it may even come at a discounted rate.
We have written insurance guidelines for over 300 types of small businesses. We know that each business has different protection requirements, so we've compiled the types of policies that each business needs into one location to make your research go just a little faster.