Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many kinds of insurance for businesses including coverage for property damage, legal liability and employee-related risks. Companies evaluate their insurance needs based on potential risks, which can vary depending on the environment and industry in which the company runs. It is especially important for small business owners to consider and evaluate their business insurance needs because they may have more personal financial exposure in the event of loss.
The main types of business insurance are as follows.
Professional Liability Insurance
Professional liability insurance provides protection against negligence claims resulting from mistakes. Because of the own unique concerns of each industry, there is no one-size-for-all professional liability coverage.
Business Interruption Insurance
This type of insurance is especially applicable to companies that require a physical location to do business. Business interruption insurance compensates a business for its lost income during events that cause a disruption to the normal course of business.
Product Liability Insurance
If your business manufactures products to sell, product liability insurance is important for you. Any business can find itself named in a lawsuit due to damages caused by its products. Product liability insurance protects a business in those cases.