For new companies, choosing the right forms of business insurance is crucial to protect against potential risks. Here are 10 types of business insurance that all new companies should consider:
1. General Liability Insurance: Essential for covering claims of bodily injury, property damage, and advertising injury caused by your business operations.
2. Professional Liability Insurance (Errors and Omissions): Important for service-based businesses, it protects against claims of negligence, errors, or mistakes in the services provided.
3. Property Insurance: Protects your business’s physical assets, such as buildings, equipment, and inventory, from damage or loss due to events like fire, theft, or vandalism.
4. Workers’ Compensation Insurance: Required in most states if you have employees, this covers medical expenses and lost wages for employees who are injured or fall ill while working.
5. Commercial Auto Insurance: If your business uses vehicles for operations (whether owned or leased), this covers them in case of accidents or other damage.
6. Business Interruption Insurance: Covers the loss of income and helps pay ongoing expenses if your business is forced to close temporarily due to a covered event like a fire.
7. Product Liability Insurance: If your business manufactures, distributes, or sells products, this covers claims arising from injuries or damages caused by defective products.
8. Cyber Liability Insurance: Protects against financial losses resulting from data breaches, hacking, and other cyber threats, which are increasingly common risks.
9. Directors and Officers (D&O) Insurance: Protects directors and officers from personal liability claims related to their actions and decisions made on behalf of the company.
10. Business Owner’s Policy (BOP): Combines essential coverages like general liability, property, and business interruption into a single, more cost-effective package.
Consulting with an insurance professional can help determine which types of coverage are most important based on your business’s specific risks and operational needs.