10 Forms of business insurance all new companies should consider

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.