1. General Liability Insurance

Purpose: Protects your business from third-party claims of bodily injury, property damage, or advertising injury.

• Covers:
  • Injuries that occur on your business premises or due to your business operations.
  • Damage caused by your business activities to others’ property.
  • Legal costs if someone sues your business for an accident or negligence.
• Example: If a customer slips and falls at your store, general liability insurance can help cover their medical expenses and any legal fees if they sue.

2. Property Insurance (Business Owner’s Policy – BOP)

Purpose: Covers damage to your business property, including buildings, equipment, inventory, and furniture.

• Covers:
  • Fire, theft, vandalism, and natural disasters.
  • Damage to property you own or lease.
• Example: If your business office is damaged by a fire, property insurance can cover the costs of repairing or replacing office equipment and building repairs.

3. Workers’ Compensation Insurance

Purpose: Provides medical and wage replacement benefits to employees injured on the job.

• Covers:
  • Medical expenses for work-related injuries or illnesses.
  • Lost wages while the employee recovers.
  • Legal defense if an injured worker sues your business.
• Example: If an employee is injured while operating machinery, workers’ comp will cover their medical bills and a portion of their lost wages while they recover.

4. Business Interruption Insurance

Purpose: Covers lost income if your business is temporarily unable to operate due to a covered event (e.g., fire, storm).

• Covers:
  • Lost revenue if your business has to close temporarily.
  • Operating expenses, like rent and utilities, while you’re unable to conduct business.
• Example: If a fire destroys your business location and forces you to close for a few weeks, business interruption insurance can cover lost revenue and ongoing expenses like rent.

5. Professional Liability Insurance (Errors & Omissions Insurance)

Purpose: Protects your business from lawsuits related to mistakes or negligence in the services you provide.

• Covers:
  • Legal costs and damages if a client claims your work was inadequate, negligent, or caused financial loss.
  • Errors in the advice or services provided by your business.
• Example: If you’re a consultant and a client sues you for providing incorrect advice that caused them financial loss, professional liability insurance can cover your defense costs and any settlements.

6. Commercial Auto Insurance

Purpose: Covers vehicles owned by your business, including cars, trucks, and delivery vehicles.

• Covers:
  • Accidents, injuries, and damage caused by a company vehicle.
  • Damage to property or injuries to third parties in an accident.
  • Personal injury and liability coverage for employees driving business vehicles.
• Example: If your delivery truck is involved in an accident, commercial auto insurance will cover the damage to the truck and medical expenses for injuries.

7. Cyber Liability Insurance

Purpose: Provides coverage against data breaches, hacking, and other cyber threats.

• Covers:
  • Costs related to data breaches, including notification, credit monitoring, and legal fees.
  • Business interruption caused by a cyber attack.
  • Liability for compromised customer data or intellectual property.
• Example: If hackers gain access to your customers’ credit card information, cyber liability insurance can help cover the costs of notifying affected clients, legal fees, and potential settlements.

8. Product Liability Insurance

Purpose: Protects businesses that manufacture or sell products from claims related to injuries or damages caused by those products.

• Covers:
  • Legal costs and damages if your product causes injury or damage.
  • Claims for defective design, manufacturing errors, or inadequate warnings.
• Example: If a consumer is injured by a defect in a product your company manufactured, product liability insurance can help cover medical bills, lawsuits, and legal fees.

9. Directors and Officers (D&O) Insurance

Purpose: Protects the directors and officers of a company from personal liability for decisions made on behalf of the business.

• Covers:
  • Defense costs and damages for wrongful acts, including fraud, negligence, or breach of duty.
  • Lawsuits filed by shareholders, employees, or other parties.
• Example: If a shareholder sues your company’s leadership for mismanagement, D&O insurance covers legal defense costs and any settlements or judgments.

10. Employment Practices Liability Insurance (EPLI)

Purpose: Protects your business from claims related to employment practices, such as discrimination, wrongful termination, or sexual harassment.

• Covers:
  • Legal costs for defending against employment-related lawsuits.
  • Claims of discrimination, harassment, or retaliation by employees.
  • Coverage for violations of employee rights.
• Example: If an employee sues for wrongful termination, EPLI will cover your legal defense costs and any settlement or judgment.

11. Umbrella Insurance

Purpose: Provides additional coverage above the limits of other policies, offering extra protection against large claims.

• Covers:
  • Excess liability coverage over general liability, commercial auto, and other liability policies.
  • Helps protect against lawsuits and claims that exceed the limits of standard insurance policies.
• Example: If a customer sues your business for $2 million and your general liability insurance only covers $1 million, umbrella insurance can cover the remaining $1 million.

12. Key Person Insurance

Purpose: Provides financial protection if a key employee (e.g., CEO, founder) becomes ill, dies, or is otherwise unable to work.

• Covers:
  • Loss of income and business disruption caused by the absence of a critical employee.
  • Helps with expenses of finding and training a replacement.
• Example: If the founder of a business unexpectedly passes away, key person insurance can provide financial stability to keep the business running during the transition.

13. Commercial Crime Insurance

Purpose: Protects your business against theft, fraud, and other crimes that may occur within the company.

• Covers:
  • Loss of money or property due to employee theft, fraud, or criminal acts.
  • Vandalism and damage caused by criminals.
• Example: If an employee embezzles funds from the company, commercial crime insurance will cover the financial loss.