What are the types of business insurance to consider purchasing?

Types of business insurance

When choosing insurance for a business, it is important to obtain the types of business insurance coverage needed for expected and reasonable losses. You will makea more knowledgeable decision if you compare compare business insurance options before committing to anything.

Basic business insurance includes property insurance – to cover losses of real property, machinery, or equipment; and liability insurance – to cover expenses and financial compensation as a result of a lawsuit against the company.

Business interruption insurance is something most businesses should consider, and is an addition to property insurance that will cover lost income and other expenses if a business cannot operate, or must temporarily move out of its location, due to an event like a fire.

For businesses with employees, there are other types of basic business insurance, including:

• Employment practices liability insurance – to cover expenses and financial compensation as a result of a lawsuit filed by an employee.
• Workers compensation insurance, for businesses with a minimum number of employees – to cover expenses and protect the business in the event of an employee’s work-related illness or injury.
• Health insurance for employees.

In addition to those three basic types of insurance, there are specialized insurance policies that many businesses don’t need, but are available to those who do – crime insurance to protect businesses with inventory or money or securities; life insurance for key employees, without whom the business could not operate; kidnap and ransom insurance; automobile insurance; and insurance against loss or theft of electronic data.