CLOSE

Auto

Home

Business

Employee Benefits

About Us

Find an Agent

What Is Business Insurance?

Updated 07:37 AM EST, Sat June 9, 2018

Looking for Coverage?

The Hartford makes it easy to get a business insurance quote online.
GET STARTED
Business insurance helps companies protect their financial assets, intellectual and physical property from a covered loss due to risks such as lawsuits, property damage, theft, vandalism, loss of income and employee injuries and illnesses. Standard coverages include Commercial Liability, Commercial Property, Commercial Auto and Workers’ Compensation. There is also a wide variety of other business insurance coverages available to address the more unique risks different businesses face.
 

Types of Business Insurance Policies

There are many coverage options available to businesses. The coverages your business needs depend on things like the industry you’re in, its size, location, and number of employees. As your business grows, it’s likely your insurance needs will change. At a minimum, most businesses have liability, property and, if they have employees, Workers’ Compensation coverage.
 
Liability Policies
 
Liability policies help protect your business from the costs related to claims against your company of bodily injury and property damage. In the event that a lawsuit is filed against your business, you may incur large legal fees – even if you haven’t done anything wrong. Without adequate liability insurance, you may have to pay the legal fees, settlement or judgment out-of-pocket. Most businesses need some form of liability insurance. The most common liability policies businesses get are general liabilityprofessional liability and commercial umbrella insurance.
 
Employee Insurance Policies
 
Workers' Compensation provides employee benefits for work-related injuries and illnesses. It can also help cover the legal costs your business may face if a deceased workers’ family decides to sue you. In most states, having workers’ compensation is mandatory. States also determine how much your policy will cost. Factors such as job risk, your business’s claims history and the size of your payroll factor into determining your cost.
 
Property Policies
 
Without adequate insurance, it could be difficult for a business to recover from significant property damage. Commercial property insurance helps businesses pay to repair or replace damaged property resulting from a fire, storm or other covered event. According to the Insurance Information Institute (I.I.I.), 40% of small businesses never reopen after a natural disaster. Without the right business property insurance, you might have to pay for these damages out-of-pocket. Commercial business property insurance policies can help cover:
 
  • Damage to the physical location of your business.
  • Damaged tools, assets and documents.
  • Damage caused by vandals.
There are even options you can add to your policy to help cover lost income. This can help you keep paying your fixed costs if your business cannot operate because of property damage. Popular property policies include commercial property, and commercial flood.
 
Risk Management
 
For businesses that need help reducing risk exposures and increasing the safety of their operations, insurance companies with Risk Engineering expertise offer loss control services. Services can include performing workplace safety evaluations, designing mitigation plans, consulting, and providing a variety of safety training programs for your employees.
 
Can I combine different business insurance coverages under one policy?
 
Yes, it’s often possible to combine different business insurance coverages from the same insurance carrier under one policy. One popular option is a Business Owner’s Policy (BOP). This combines general liability, property insurance and business income in one policy which makes your insurance easier to manage and pay for.
 
Which insurance coverages are required and recommended for businesses with employees?
 
Businesses with employees are required by law in most states to provide workers’ compensation, unemployment insurance and in some states, disability insurance. Consider getting an employment practices liability (EPL) policy as well. If an employee makes a claim against your business, EPL can help cover the costs. If you or your employees will be driving for work purposes, consider commercial auto. This can help cover the costs if you or your employees cause an accident while driving for your business.
 
What is Business Insurance for?
 
Business insurance helps companies manage risk by providing a layer of financial protection from losses that may occur during the normal course of business operations. When a business purchases insurance coverage from an insurance carrier, the insurance company is then obligated to pay the business for the cost of the covered loss up to the limits of the policy.
 
Business insurance helps protect the business you worked so hard to build, get a quote today.