The Right Kinds of Business Insurance
There are many different kinds of insurance that business owners can choose from. Insurance helps protect your business from different risks that can come up while it's running normally. It can be hard to figure out what business insurance you need, but we're here to help.
For their small business insurance needs, many business owners start with a Business Owner's Policy (BOP). It covers three important things:
- General liability insurance
- Commercial property insurance
- Business income insurance

We know every business is different. That’s why we’re here to help you get the right types of business insurance.
8 Types of Insurance Policies for Small Businesses to Consider
Depending on your industry, you may be required to obtain a variety of insurance policies. Due to the fact that every firm faces its own unique issues and threats.
There are numerous forms of insurance available, but the following eight products can protect small businesses from a number of dangers.
Here's to give you an idea for each..
General Liability Insurance (GLI)
General liability insurance helps protect your business from claims that it caused:
- Bodily injury to someone else
- Property damage to another person’s belongings
- Personal injury, like libel or slande
Commercial Property Insurance
Commercial property insurance helps protect your owned or rented building and equipment that you use to run your business.
Be aware that this insurance doesn’t cover damage from earthquakes or floods. You’ll likely have to get a separate policy, like commercial flood insurance, to help protect your business from these kinds of claims.
Business Income Insurance
If you can’t run your business because of covered property damage, business income insurance can help replace your lost income. So, you can use this coverage to help pay for ongoing expenses, like rent, utility bills, or payroll. This type of insurance is also known as "business interruption insurance."
Professional Liability Insurance
Professional liability insurance helps cover lawsuits claiming that you made a mistake in the services you provided. This type of insurance is also known as errors and omissions (E&O) insurance.
Workers’ Compensation Insurance
Workers’ compensation insurance gives your employees benefits if they get hurt or sick on the job. These benefits can help:
- Pay for their medical bills
- Replace most of their lost wages if they miss work to recover
- Cover funeral costs if they lose their life due to a work-related injury or illness
- Pay for ongoing care, like physical therapy
Most states require businesses with employees to carry workers’ compensation insurance. You can face fines, penalties, and criminal charges if you don’t comply with your state’s law.
Data Breach Insurance
If personally identifiable information is lost or stolen, data breach insurance can help your company deal with the situation. This coverage may be known as "cyber insurance" by some insurers.
Data breach insurance can help cover your costs for:
- Notify impacted individuals
- Offer identity theft monitoring services
- Create a public relations campaign
Commercial Umbrella Insurance
Commercial umbrella insurance extends the coverage limits for some of your liability policies. So, if a claim exceeds the limits on your policy, your umbrella insurance can help cover the difference.
Commercial Auto Insurance
If you use company-owned vehicles for business purposes, commercial auto insurance can help to protect you, your drivers, and your passengers. It can help cover property damage and bodily injury claims from an accident your business causes. This is important because a personal car insurance policy won’t help cover third-party claims in an accident you cause with a business-owned vehicle.
