There are multiple types of business insurance available for small business and large scale business. Below are the most popular business insurance types.
- General Liability Insurance: This gives your business protection against any financial damage occurring due to damage to the property of your business, medical expenses occurred due to business operations like any accidents in the factory or similar incidents. It also covers libel, bodily injury, legal aspects like expenses occurred for defending lawsuits, and others.
- Professional Liability Insurance: It is for the businesses that offer services to their clients or service providing business. This insurance covers any financial loss occurring out of errors, malpractices, and negligence.
- Home-based Business Insurance: It covers any liability for third-party injury that happened for business operation. It also covers small equipment required in home-based businesses.
- Product Liability Insurance: It helps manufacturing businesses to cover financial loss occurring from products that are defective or caused any injury to the customers.
- Commercial Property Insurance: This is one of the crucial insurance as it covers any damage occurring to the property of the company due to natural or man-made disasters like floods or fire respectively.
- Business Owner’s Policy: This is a complete insurance package that is comprised of all the other types of insurance you read above. It combines the business property coverage insurance, business interruption coverage, and also the general liability coverage.
There are certain additional coverages as well that you can add to your present small business insurance along with the basic coverages that are mentioned above. These additional coverages include –
- Errors And Omission Insurance: It is also referred to as insurance for miscellaneous professional liability. It helps the insured small business owner to safeguard themselves from allegations put on by their clients based on certain mistakes or erroneous advice provided by the firm and in turn losses incurred due to that.
- Business Auto Insurance: Generally, business vehicles are nor covered by the auto insurance that you use for personal use. So, you need another insurance to cover your business vehicles. This is an important one as in various small businesses, there is a huge use of automobiles, and those need to be covered to reduces losses of the business.
- Equipment Breakdown Coverage: If you add this coverage to your business insurance policy, then if the pieces of equipment used in the business are damaged under any incidents (covered by the insurance) you will get coverage for repairing or replacing those equipments.
- Data Compromise Coverage: These days data is the most important asset of any business and any compromise with that can lead to a huge loss. This insurance coverage helps you reimburse the amount lost in the business due to a breach of data and information. It is also called as data breach liability insurance.