Types of Business Insurance: What Do I Need? | Insureon (2024)

With accidents, it's not "if" but "when" they'll occur. Thankfully, with the right business insurance policies, you can safeguard your business from unforeseen mishaps. From a fire to an injured employee to a vehicle crash, business insurance can protect you from financial loss in the event of a crisis or accident.

Some of the most essential types of insurance protect you from costly lawsuits. The type of liability insurance you'll need depends on several factors, including your profession and the services provided.

You may need other policies to comply with state laws, get a license, or work for a client. The specifics depend on what your business does, where it operates, and what kinds of assets you have.

Types of business insurance

Almost every small business needs general liability insurance. This liability policy provides protection against common customer or client accidents, including bodily injuries, property damage, and personal injuries. An accident involving a customer can result in huge legal fees and medical expenses, making this an important policy for any business.

Every type of small business, including sole proprietorships, limited liability companies (LLCs), and startups, can benefit from this coverage, as even an accident involving a delivery person at your home office could lead to a lawsuit.

The types of risk your small business faces will dictate the policies you should purchase.

For instance, small businesses with valuable property should consider commercial property insurance, which covers your physical assets against loss or damage due to vandalism, natural disasters, and similar events. If you are a small business owner in a low-risk industry, you may be able to cut premium costs by combining this policy with general liability coverage in a business owner’s policy (BOP).

These policies address your bare-bones exposures. However, you may need additional coverage depending on your industry, location, and operations.

For example, most states require you to carry workers’ compensation insurance if you have employees. Similarly, all business-owned vehicles must have commercial auto insurance.

Read more about when insurance is required to determine the right coverage for your company.

Find the right business insurance coverage

General liability insurance

Professional liability insurance / Errors and omissions insurance

Workers' compensation insurance

Commercial auto insurance

Cyber liability insurance

Commercial property insurance

Contractor’s tools and equipment insurance

Product liability insurance

• Business interruption insurance (business income insurance)
• Commercial umbrella insurance
• Employment practices liability insurance (EPLI)
• Inland marine insurance
• Liquor liability insurance
• Surety bonds

Your insurance needs depend on the specific characteristics of your small business. Because similar professional services share the same risks, it's helpful to explore business insurance coverage recommendations by industry.

Select your profession from the list below for details about what kinds of insurance your small business might need.

For an in-depth look at how various small business insurance policies differ, see more comparisons:

• General liability insurance vs. business owner's policy
• General liability insurance vs. workers' compensation insurance
• General liability insurance vs. professional liability insurance
• General liability insurance vs. errors and omissions insurance
• Commercial auto insurance vs. hired and non-owned auto insurance (HNOA)
• Commercial auto insurance vs. personal auto insurance
• Excess liability insurance vs. commercial umbrella insurance
• Liability insurance vs. property insurance

Buying insurance doesn't have to be a chore. Get started by completing Insureon’s easy online application today to get free quotes from top-rated U.S. providers.

If you're uncertain about your business insurance needs, speak to a licensed insurance agent who can answer your questions and offer advice.

Once you find the right types of coverage for your small business, you can begin coverage in less than 24 hours. After paying for your policy, you can download a certificate of insurance to show clients and others that your business is protected.