Six Types of Business Insurance and What They’re For

​Small business owners need to apply for a comprehensive business insurance policy, especially since they are the ones most vulnerable to large financial expenses in a loss. However, it can be a little confusing for a starting company to know about the different insurances they need for their businesses. Here are some of the types of business insurance business owners should consider.

Types of Business Insurance Coverage

Professional Liability Insurance
Professional liability insurance varies, and its contents are unique for each client because of the different issues that need to be addressed in every industry. However, practically, its purpose is to insure the company against claims of negligence from failure to perform or mistakes during business operations.

Property Insurance
Property insurance covers your company’s properties, including buildings and fixtures, equipment, inventory, and furniture in cases of fire damage, explosion damage, wins or storm damage, and theft. The policy can reimburse the policyholder for the value of the damage or replacement cost, depending on the conditions. However, damages caused by mass catastrophes such as floods and earthquakes are not covered by this and will need a separate policy.

Home-Based Business Insurance
If you own a home-based business, your homeowner’s insurance policy will not cover your equipment and inventory. You need to apply from your insurance provider for additional coverage of your home-based business properties.

Liability Insurance
If your company sells products or services to your customers, it is necessary to have liability insurance. Liability insurance ensures that your business is protected from lawsuits caused by damages or harm from using products or services. 

Company Vehicle Insurance
Cars and other vehicles you use for your business must be fully insured, especially for businesses that involve a lot of traveling. This is to make sure that your vehicle is covered by insurance in case of an accident or unforeseen event (e.g., tree falling on your car)

Business Interruption Insurance
Business interruption policies cover losses in income from unforeseen circumstances that disrupt normal business operations. This is very practical for businesses fixed on a physical location, e.g., retail stores, which rely mainly on everyday customers. 

Conclusion
Understanding the different types of business insurances you need can be confusing, but is worth it in the long run. It is essential to know which policies to include for your business insurance to make your business secure.

At Arnold, Bruce & Doerfler Insurance, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (503) 222-1951 or Click Here to request a free quote.