10 Types of Business Insurance You Need
Business Insurance helps protect your business from a variety of risks, including fire, theft, and bodily injury. Having business insurance can help cover the costs of property damage, liability claims, and lawsuits.
If your business was damaged from a fire or you suffered a data breach and you didn’t have a Business Insurance policy to help cover the costs of repairs, you would be responsible for paying for it out of pocket.
There are a number of types of Business Insurance available, all with the goal to give your business comprehensive protection from risks. Here are 10 types of Business Insurance to know about:
1. Business Owner’s Policy
Combining business property and business liability insurance as a single policy, a Business Owner’s Policy helps cover the costs of property damage, bodily injury, and personal and advertising injury.
Business owners can also add additional insurance coverages to a Business Owner’s Policy to ensure it’s tailored to the unique needs of their business.
Consider a Business Owner’s Policy if your business operates in a physical location, there’s a possibility of a lawsuit, or if you have physical or digital property can be stolen or damaged.
2. Workers’ Compensation Insurance
Workers’ Compensation Insurance helps protect employees for work-related injuries or illnesses. Workers’ Compensation Insurance, also known as workers’ comp, helps cover the costs of medical care and can help replace some of the wages from lost work time.
Workers’ Compensation Insurance can also provide financial assistance to the family of a deceased employee. If an employee’s family decides to sue the company, Workers’ Compensation Insurance can help cover the legal fees.
3. General Liability Insurance
A General Liability Insurance policy helps protect your business from claims of property damage, bodily injury, and personal and advertising injury.
General Liability Insurance is also known as Business Liability Insurance or Commercial General Liability Insurance. The insurance policy can help cover the costs if someone is hurt, if their property is damaged or if someone makes a claim of malicious prosecution, libel, slander, wrongful eviction, or violation of the right of privacy.
4. Business Income Insurance
If your business is unable to open and operate because of a covered event, such as damage from a fire or theft, Business Income Insurance helps replace the lost income.
If the wind knocks down power lines and causes a fire at your business and you can’t open for business, Business Income Insurance can help cover the costs until your business opens.
A Business Income Insurance policy can help you pay for expenses to keep your company in business, even if the doors are closed.
5. Data Breach Insurance
Data breaches are a serious issue that needs to be resolved immediately. If your company experiences a data breach, Data Breach Insurance can help cover the costs for you to address the incident.
Depending on the level of coverage chosen, Data Breach Insurance helps cover the costs of identity protection solutions, legal fees, liability, public relations, and more. A Data Breach Insurance policy can help you restore the public’s confidence in your company following a data breach.
6. Commercial Auto Insurance
Commercial Auto Insurance helps cover the costs if you or an employee is found at fault of an auto accident. The insurance policy helps cover the cost of damaged property and medical expenses.
Consider a Commercial Auto Insurance policy if your company owns, leases, or rents vehicles; if your employees use their personal vehicles for business reasons; or if you have employees operating company vehicles.
7. Commercial Flood Insurance
If your floors, walls, ceilings, equipment and fixtures, inventory, and business property are damaged from floodwater, a Commercial Flood Insurance policy can help cover the costs of repairs.
Consider a Commercial Flood Insurance policy if your Business Property Insurance policy doesn’t cover flood damage. A Commercial Flood Insurance policy helps protect your business’s location, as well as the physical contents.
8. Commercial Property Insurance
A Commercial Property Insurance policy helps protect the building your property owns or leases. It also helps protect personal property in the building, such as tools and equipment, inventory, and furniture.
Business owners can add additional coverage to help protect other important parts of their company, including valuable papers and records coverage.
9. Commercial Umbrella Insurance
Your business can be at significant risk if it’s the target of a lawsuit. If the cost of the claims exceeds the limits of your primary insurance policies, a Commercial Umbrella Insurance policy extends the liability coverage.
A Commercial Umbrella Insurance policy provides another layer of protection for your business. If you didn’t have it, you could be responsible for paying for any damages that exceed the limits of your primary insurance policies.
10. Professional Liability Insurance
Also known as Errors & Omissions Insurance, Professional Liability Insurance helps protect you and your company if you’re found at fault for providing a service that caused a client or customer to experience damages.
Consider Professional Liability Insurance if your business involves working directly with customers.
How Much Does Business Insurance Cost for Startups?
A number of factors contribute to the cost of Business Insurance. Generally, you can anticipate spending between 20% to 30% of your business’s gross sales.*
The cost of Business Insurance can be affected by the type of coverage you choose, the level of coverage, the size of the company, and any unique needs.
The Best Business Insurance for Mature Businesses?
Whether you’re just starting your business or if your company has been in existence for years, it’s never too late to shop around for better Business Insurance.
At The Hartford, our team is always willing to help business owners find the right coverage for their company. Getting an online quote for Business Insurance is fast and easy. Or if you prefer to talk to a representative at The Hartford, you can call 1-855-829-1683.