Business Insurance

Types of business insurance

Business insurance policies typically fall into one of two main categories: property and casualty insurance. Both offer important protection for two common parts of a business. Property insurance covers a business’s physical assets or property. Casualty insurance protects individuals or businesses against liability.   

Many states have their own business insurance requirements, so make sure you purchase the types of coverage that are necessary in your state. You can also bundle and customize most policies to meet your business needs. Here are some of the common types of business insurance policies: 

These policies are the most common across small- to medium-sized businesses. An insurance broker or agent can work with you directly to help you find the best policy bundle for your needs. 

Identifying your insurance needs 

Every business has its own unique needs and wants to prepare for possible unexpected circumstances relevant to its size, location, industry, and specific operations.   

• Assess Your Risks: Start by identifying potential risks and liabilities associated with your business. Consider factors like your industry, the nature of your products or services, the location of your business, and whether you have employees. For example, a construction company would have different risks compared to a healthcare practice or a tech start-up. 

• Evaluate State and Industry Requirements: Some types of insurance, like workers’ compensation or commercial auto insurance, may be mandated by state law or industry regulations. Research your state’s insurance requirements and any specific rules that apply to your industry to ensure compliance. 

• Consider Your Assets: List all the physical assets of your business, such as property, equipment, inventory, and vehicles, as well as intangible assets like intellectual property. Consider how much it would cost to repair, replace, or protect these assets in the event of a loss. 

• Consult with an Insurance Professional: An experienced insurance agent or broker can provide valuable insight regarding the types of coverage that would be most appropriate for your business. They can help you navigate the complexities of different policies and determine the right amount of coverage based on your goals. 
• Review Your Contracts and Leases: Check any contracts you have with clients, vendors, or landlords. Some agreements may require specific types of insurance or minimum coverage amounts, which can help you understand the type and level of coverage you need. 

How to get business insurance

Once you’ve identified the types of insurance coverage you need, the next step is to find a provider.  

1. Compare Your Options: Use online comparison tools to obtain quotes for coverage in just a few minutes.  

2. Understand the Terms and Conditions: Carefully review the terms and conditions of each policy to ensure you fully understand what is covered and what is excluded. Be aware of the policy limits, deductibles, and any potential coverage gaps. 

3. Customize Your Policy: Many insurers allow you to customize your policy to better fit your business needs. For example, you can add endorsements or riders (additional benefits) to enhance your coverage or include specific protections for unique risks. 
4. Regularly Review and Update Your Coverage: As your business grows and changes, so do your risks. Regularly review your insurance coverage and adjust it as needed to ensure you are protected. This could mean increasing coverage limits, adding new types of insurance, or removing coverage you no longer need.