Does Your Business Have These? 5 Types of Business Insurance and Why You Need Them

Your business, no matter how big or small, whatever industry you are involved in, there is one thing very important that you should invest in—commercial insurance. Every business is different and therefore it is also important that the insurance policy that you should get is the one that suits your business’ needs perfectly. To know what policy you should buy, get to know the different types of commercial insurance policies out there and what they are for.

Workers' Compensation Insurance

This is for your employees. Most state laws, if not all, require businesses to have Workers' Comp insurance This one is intended to cover medical expenses and a portion of your employees’ lost income in the event that they get injured on the job. As the name implies, this is the insurance type that your business will need when a worker gets hurt in the work place, job site, or while performing his duties.  An example of which, is when an employee slips on a wet floor in your office.

General Liability Insurance

On the other hand, general liability insurance is for the protection of your business, or you as the business owner, against different sorts of accidents, injuries or claims arising from negligence. This insurance should cover property damage, medical expenses, faulty products and or legal obligations. Getting sued is something you want to avoid and it can happen to anyone. You do not want your business to get hit with a law suit when you are not prepared for one.

Professional Liability Insurance

This type of insurance is also known as "Errors and Omissions Insurance" or it is also known as "Malpractice Insurance." This is more suitable for service based practices. Professionals make mistakes and some mistakes have legal consequences and this is the insurance that is expected to protect professionals from damages brought by negligence or malpractice.

Property Insurance

The definition of property depends on the type of business you are in. But in a nutshell, this is the type of insurance usually cover equipment replacement or asset replacement as a result of an unforeseen damage. Some businesses may need this property insurance for their supplies, their buildings or other assets considered essential to the business.

Life Insurance / Key Executive Insurance

Every business needs this one if you want to have good employees. You want to have coverage for your valuable employees like executives or any employee considered to be crucial to your business operations. Offering this type of insurance in your work place attracts valuable and high quality talent.

These are just some examples of commercial insurance that businesses should have. There are companies that offer a combination or a comprehensive plan that includes two, three or even all of this. Finding the right policy can be confusing. To help you with that, check out this link.