Types of Business Insurance

Insurance is necessary for businesses, big and small. However, the types of insurance your business may need will depend on different factors such as the type of industry your company is in, risk of employee injury, federal, state and local laws, where your business operates and more.

Business insurance policies can protect your company, your employees and yourself in the event of injury, property damage, theft, fire and liability claims. While it’s an additional investment in your company, it’s one worth making.

What is Business Insurance?

Business insurance is intended for companies rather than individuals. Depending on the type of business insurance you purchase, it can even protect your company from lawsuits. Small businesses usually are more exposed to financial losses and even business closures. Business insurance can protect against this and help you keep your company up and running, even in the darkest of times.

Our agents can evaluate your risks and help you pick which types of business insurance you need while keeping your budget in mind. If you cannot cover out-of-pocket costs in the event of a disaster or lawsuit, talk to one of our agents today.

Types of Business Insurance

Commercial Property Insurance

Damage can happen to any business. Whether you sustain damage to your office, your company vehicles or any other type of company property, property insurance can cover the cost of repair or replacement. The damage may be caused by man or through natural events.

It’s important to note that damage due to flooding and earthquakes is usually not covered with this type of policy. Vandalism, lightning damage and fire are typical coverages with a commercial property policy.

Your physical assets may be included in this type of policy as well. Make sure you provide your insurance agent with an inventory of company assets. This may include computers, machinery, furniture and more.

Workers’ Compensation Insurance

Workers’ Compensation insurance (also known as workers’ comp) protects your employees that are injured on the job. It will cover their medical expenses pertaining to the injury and may also cover their lost wages while they recover.

Workers that fall ill due to occupational hazards may also be covered under this type of insurance. Most states require companies to carry workers’ compensation insurance by law.

Commercial Auto Insurance

Any company that has company cars or vehicles needs commercial auto insurance. Whether you use trucks for landscaping or allow employees to use company cars to take clients to lunch, every business owner needs the proper coverage in place.

Professional Liability Insurance

If your company is sued for negligence, having a professional liability policy in place can help. Also known as Errors and Omissions insurance, if a client thinks you made a mistake regarding your professional services and they were harmed in any way, they may sue you for damages.

Business Interruption Insurance

Businesses that are forced to close for short periods of time can have difficulty keeping the company afloat. This type of policy, also known as business income insurance, can cover your financial losses by replacing lost income and help you continue to pay for your office space, employee salaries, etc.

Data Breach Insurance

If your company stores any private personal data or financial data, data breach insurance is crucial for your protection. Unfortunately, hacking is common and if you are hacked, your company’s private data may be stolen as well as confidential client data. This type of insurance will cover the damages due to a data breach.

General Liability Insurance

As far as business insurance coverage goes, this one is part of the first line of defense. In the event of a lawsuit, general liability coverage can cover the cost of an attorney. It acts to protect your business in the event of liability claims due to bodily injury, personal injury and property damage caused by your business.

Home-based Business Insurance

If you run your business out of your home, this type of policy may protect you. Homeowners insurance policies do not cover businesses run out of your home. If your office equipment is stolen or damaged, a home-based business insurance policy can cover your items.

Directors and Officers Insurance

If your company has a director or officer and they act inappropriately towards customers or employees or conduct business unethically, a scandal may be on your hands as well as a lawsuit. This type of policy will pay for legal costs and pay for the financial aftermath.

Life Insurance

A business can purchase life insurance for any employee that is considered essential to the company’s operation. For small businesses or family owned companies, this can be crucial to have if the person in charge passes away.

Product Liability Insurance

Does your business sell a product? If so, product liability insurance may be an asset for your company. If your product or service injures a customer, this type of policy will cover legal and medical fees. Additionally, if your product is defective and a class action lawsuit occurs, it’s smart to have insurance so you will be protected financially. Otherwise, your business may collapse.

What Type Do I Need?

There are four main types of business insurance that almost every company needs: workers compensation, property, commercial auto and liability insurance. It all depends on your business size, location, potential risks and revenue.

If your company has company vehicles, it is an absolute must to have commercial auto insurance. This will give your company and vehicles protection in the event of an accident.

Unless your business is private and located in Texas or Oklahoma, you will be required to have workers’ compensation insurance. These requirements vary by state. To make the process simpler, work with an insurance agency to navigate these requirements correctly.

How We Can Help

At Gebhardt Insurance Group, we have extensive experience insuring businesses just like yours. Whether you need small business insurance or have a large company, we can help you assess your risks and get you covered so you’re prepared in case disaster strikes.

Our insurance company will work tirelessly to help protect your business. Need help determining what type of business insurance you need or interested in additional coverages? Give us a call at 520-836-3244.