Business property insurance and liability insurance, which include errors and omissions insurance, employment practices, product liability, and/or other forms of liability insurance, are the most common business insurance types. In addition to those, there are several more types that may or may not be mandated by your state law.
For example, most if not all states will require a business to pay unemployment insurance and/or disability insurance. Elective insurance types include health and medical insurance, Directors and Officers (D&O) insurance, vehicle insurance, website insurance, and key-person life insurance.
If your business is growing and you do not yet have health and medical insurance, this is something you will want to consider. Health and medical insurance will cover your employees’ medical costs and/or work related injuries. Additionally, this type of insurance will add to the appeal of those seeking employment in your company.
D&O insurance exists to protect a corporation’s officers and directors from any type of personal liability in the event of a claim or lawsuit against them.
Vehicle insurance is good to have if you have any vehicles that are owned and frequently operated by your company. It will cover liability for any injuries caused by these vehicles, as well as extend coverage for vehicles that is beyond standard business property insurance.
Although not as well known as other types, website insurance is gaining in popularity. This type of insurance covers claims made against the company’s website as a result of actions taken or items purchased through the website. Before you purchase this insurance, look to see if any types of other business insurance you may have will cover this already for you.
Key-person life insurance is referred to as the policy taken out on the owner of the business or the key person behind the business should that person die. If you run a small business closely run by one person or a few key people, this type of insurance can prove to be quite worthy.