The Different Types of Business Insurance and What They Cover

Running a business involves various risks, from property damage to legal liabilities. Business insurance is essential to protect your company from potential financial losses.

Types of Business Insurance Explained

The following are some common types of business insurance and what they cover:

• General liability insurance—This policy is essential for any business. It can offer financial coverage for claims related to bodily injury, property damage and personal injury (such as slander or libel) on your business premises or due to your business activities.
• Property insurance—This type of insurance can financially protect your business property, including buildings, equipment and inventory, against risks like fire, theft and severe weather. If a fire damages your office, property insurance can help cover the cost of repairs or replacement of damaged items.
• Workers’ compensation insurance—Required in most states, this insurance can offer financial coverage for employees who suffer work-related injuries or illnesses. It can assist in covering medical expenses, rehabilitation costs and a portion of lost wages. For example, if an employee injures their back while lifting heavy boxes, workers’ compensation insurance can help pay for their medical treatment and compensate for lost income during their recovery.
• Professional liability insurance—Also known as errors and omissions (E&O) insurance, this policy is crucial for businesses that provide professional services. It can financially cover claims of negligence, errors or omissions that result in monetary loss for clients. For example, professional liability insurance can help cover the resulting legal costs and damages if an accountant makes a mistake on a client’s tax return.
• Commercial auto insurance—Commercial auto insurance is necessary if your business uses vehicles for operations. It can help financially cover damage and liabilities from accidents involving your business vehicles. This can include coverage for vehicle repairs, medical expenses and legal fees if your driver is at fault in an accident.
• Business interruption insurance— This insurance can assist in covering lost income and operating expenses if your business is temporarily forced to close due to a covered event, like a natural disaster. For example, if a flood forces your business to close for a month, business interruption insurance can help cover lost revenue and ongoing expenses like rent and payroll.

Learn More

Contact Rhino Insurance Brokerage LLC today to discuss your business insurance portfolio.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.