Skip to main content

Business Insurance FAQ 2 – What Does Business Insurance Cover?

Find out more about the basic coverages included in a business insurance policy.

Business insurance usually includes the basic types of coverage listed below. These policies will ensure the continuation of your business in the event of an expensive lawsuit, natural disaster, fire or theft. Without insurance, a major setback might spell the end of your business.

  • General liability insurance is designed to protect you and your business from many of the risks involved in running a business. These include claims for bodily injury and property damage on your premises, injury or damage from faulty products, and negligent actions from contractors you hire.
  • Property insurance protects against the financial loss and damage to your business property from fires, storms, theft, vandalism and other named causes.
  • Commercial vehicle insurance is coverage for your business’s vehicles and drivers for collision, liability, property damage, personal injury and damage to your vehicle.
  • Business income will provide your usual operating expenses if a natural disaster, fire or other event specified in the policy causes your business operation to be interrupted.

Other coverage you may need:

  • Product liability is designed specifically to cover your liability from faulty products that may cause damage, illness, injury or death.
  • Professional liability provides protection against the financial impact of negligent professional duty, wrongful acts, advice and services that lead to another’s loss or injury.
  • Errors and omissions is a type of professional liability insurance that covers a loss or injury suffered as a result of your failure to deliver on promised services.
  • Workers compensation covers employees who are injured or become ill on the job, and it’s required by law in most states.
  • Key person is a form of life insurance that pays a death or disability benefit if the owner or a key person in the company suddenly dies or is incapacitated.
  • Cybercrime covers risks to your business from a data breach or other internet-related crimes.