What Are the Different Types of Business Insurance?


When it comes to business insurance, there are general policies for commercial businesses and others that specialize in certain areas. It’s useful for companies to carefully consider what insurance is needed to ensure they have the right type of coverage to protect their interests. Here are some of the business insurance policies you may need.

General Liability

Let’s take the example of a web studio providing digital media services to individuals and other companies. They will have an office and both prospective and current clients will occasionally pay a visit. During the visits, they’ll either see a proposal for a new project or receive an update on progress to date. What if something bad happens while they’re there?

A commercial insurance company can provide a general liability policy that protects against visitors tripping and injuring themselves on the premises. They may sue for injuries sustained and having this policy in place protects the company from the consequences of that.

The insurer may be involved in negotiating a settlement to avoid the matter going to court, or they will work with lawyers with this end goal in mind. Having them on your side and bringing the experience of other, similar cases, will prove extremely valuable beyond the insurance coverage alone.

Commercial Auto

A business with a fleet may be concerned about any damage to their company vehicles either while parked or during business use. Beyond the possible vehicle damage from an impact, potential legal liability is a concern should anyone involved become injured too. A commercial auto policy provides specific cover for one or more vehicles that the company uses.

Commercial and Residential Property Owners

If you are a residential property owner, such as a person owning an apartment building, this brings with it a host of potential problems. Also, a commercial property like a warehouse or mixed-use building has various risks when leasing it out too. What if someone falls down the stairs or the elevator malfunctions while a resident is inside the apartment building? A roof shingle could have shifted in a storm and later fallen onto someone at the entranceway. An electrical fault could cause liability issues in a commercial building too.

For landlords with apartment buildings, they can benefit from having commercial property insurance. It would cover them from liability concerns and the tendency for people to look to blame others, regardless of the validity. The same is true for commercial building owners who are worried about what might happen.

Errors and Omissions

Errors and Omissions policies, or E&O, are commercial business insurance policies that cover negligence claims. This centers around protecting against claims that a professional provided bad advice. E&O policies are best taken out by people who provide professional services through a business entity. This might include financial advisors, lawyers, and others.

Trucking Cover

Operating a commercial trucking business is troublesome at times. Large, slow-moving trucks taking long journeys create the potential for more accidents than the average. A business that operates as a trucking industry needs truck insurance coverage to protect against general liability concerns, cargo damage, collisions, and damage to people or other property. Given the nature of the trucking business, specialized business insurance is required for it.

Business insurance comes in many types. While there are policies that cover some broad areas, most companies require extra cover for specific, additional protection.