Six Common Types of Business Insurance As a general rule, you should insure yourself against things you couldn't afford on your own. This coverage protects against financial losses as a result of bodily injury, property damage, medical expenses, defamation, slander, defense of claims and bonds, or conciliation judgments. If you've formed a corporation, limited liability company, or other business entity, you may not realize that you still need insurance. There are many types of insurance for businesses, including coverage for property damage, legal liability, and employee-related risks.
Also known as commercial line insurance, these coverages include property and casualty insurance products for businesses. And you may lose customers because they won't do business with you if you don't have general liability insurance. Professional liability insurance insures against negligence claims that result from errors or lack of performance. Business interruption (or continuation) policies are a type of insurance that applies especially to companies that require a physical location to do business, such as retail stores or manufacturing facilities.
You can manage the costs of general liability insurance by choosing the insurance limits that best suit your needs. These types of liability claims are common, so you'll want to keep your business protected with the right insurance. General liability insurance protects a company against bodily injury and property damage claims by customers and customers. Facing judgments, legal settlements and attorney's fees without the help of general liability insurance can be very expensive and even bankrupt a company.
If you answered “yes” to any of these questions, business insurance will help you minimize your risks. General liability insurance is sometimes referred to as “commercial liability insurance” or “commercial general liability insurance”. However, a business entity won't help your company survive a fire, flood, data theft, or personal injury lawsuit. You can get a list of authorized agents in your state through your state's insurance department or the National Association of Insurance Commissioners.