Regardless of size, sector or safety precautions, every business must implement risk management and loss control measures. Business insurance may be paramount among these preparations, as purchasing and retaining the right coverage can provide your company with the resources and assistance needed to offset financial losses and regain its footing. However, business insurance can be a complicated and multifaceted subject with many types of coverage available.
Understanding Different Business Insurance Policies 
The term “business insurance” may refer to many types of coverage. That’s because most organizations will require multiple policies to establish and maintain a sufficient coverage portfolio capable of addressing all relevant risks and exposures.
While your company’s exact coverage needs can vary depending on unique circumstances, such as its location and the industry in which it operates, the following types of policies may be valuable for most businesses:
- General liability insurance—Also known as commercial general liability insurance, these policies can offer financial aid if your business is at fault for third-party losses, such as bodily injuries, property damage and reputational harm.
- Commercial property insurance—This insurance can financially protect tangible assets, such as buildings, electronics, furniture and inventory. Covered perils typically include fires, theft, vandalism and some types of water damage.
- Business interruption insurance—This coverage can compensate your company if it’s forced to temporarily halt or delay operations due to a covered incident, potentially helping you recoup lost income and manage ongoing expenses.
- Workers’ compensation insurance—Often required by law, these policies can help employees with losses and expenses following work-related injuries and illnesses, including assistance with medical bills and wage replacement. It may also include employer’s liability coverage, which can cover legal expenses if your business is sued following such incidents.
- Professional liability insurance—These policies, also known as errors and omissions insurance, can help pay for legal assistance and financial losses if a client, customer or other party accuses your business of making professional errors or providing subpar work.
- Cyber liability insurance—Increasingly important in the digital age, this type of insurance can offset losses and expenses arising from data breaches and other cyber incidents.
Depending on your business’s situation, additional policies may also be necessary. For example, a commercial umbrella insurance policy may be necessary if you have significant liability risks. Similarly, commercial auto insurance is typically needed if you use motor vehicles for business purposes.
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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.