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Securing Your Business: Key Insurance Coverages You Can't Afford to Ignore

Updated: Jan 1

As a business owner, having the right insurance coverage in place is crucial for protecting your company against risks and liabilities. Though there are many types of business insurance policies available, some are more essential than others when starting out. This outline covers the key insurance policies that most businesses need to have.

Businesses need to have comprehensive insurance coverage to protect them from financial losses due to unexpected events. Having the right insurance coverage not only helps protect businesses from financial losses, but it also helps them remain compliant with the law. Depending on the type of business, the essential coverage that a business will need can vary. Common types of coverage that businesses should consider include general liability, property, commercial auto, workers' compensation, and professional liability. General liability insurance helps cover expenses related to bodily injury or property damage that occur on the business’s premises or due to the business’s operations. Property insurance helps protect businesses from losses due to damage to their property or equipment. Commercial auto insurance helps protect businesses from financial losses in the event of an accident involving a company vehicle. Workers’ compensation insurance helps cover medical expenses and lost wages for employees who are injured in the course of their work. Professional liability insurance helps protect businesses from legal claims related to negligence or malpractice. Each of these types of coverage is essential for businesses to protect their interests and avoid potential financial losses.

General liability insurance

  • Covers third-party bodily injury and property damage claims

  • Protects against lawsuits from customers, vendors, etc.

  • Typically required by landlords and lenders

Professional liability insurance

  • Covers claims of malpractice, negligence, or errors

  • Important for service businesses working directly with clients

  • Also called errors and omissions (E&O) insurance

Property insurance

  • Covers damage to business property due to fire, theft, vandalism, etc.

  • Can cover building itself, contents, inventory, equipment

  • Helps pay for repairs or replacements if disaster strikes

Workers' compensation insurance

  • Covers medical care and lost wages for employees injured on the job

  • Required by law in most states for businesses with employees

  • Rates based on industry risk and company payroll size

Cyber liability insurance

  • Covers data breaches, hacking incidents, and cyber attacks

  • Can include coverage for data loss/restoration, legal claims, PR crisis management

  • Especially important for companies handling sensitive customer data

Commercial auto insurance

  • Determine Which Vehicles to Insure

  • Select Your Liability Limits

  • Consider Adding Other Coverages

  • Choose Any Optional Coverages

  • Get Multiple Quotes

Having the right insurance creates a safety net for your business. Work with an agent or broker to determine the optimal coverage for your operations and risks. Don't cut corners on insurance—the protection is well worth the investment.

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