What does business insurance cover?

Business insurance coverage options

There are a few basic business insurance coverage options, and a few specialized options that only certain types of businesses, or businesses with certain types of assets, may need.

The basic types of coverage are:

• Property business insurance – Will compensate business owners if the business property is damaged, for example by a fire.
• Liability insurance – Will compensate business owners for any lawsuits brought against the company and will pay for damages the company is liable for, attorneys’ fees, and medical bills of anyone injured by the business.
• Business interruption insurance – Is not always included in basic policies, but is a critical coverage most businesses should have. In the event of a disaster, or anything that prevents a business from operating and producing income, this insurance will cover lost income and help the business continue to operate.

Some small- and medium-sized businesses can purchase a packaged product called a Businessowners Policy, which usually includes business interruption, property, and liability insurance.

There are several other insurance options to consider when insuring a business:

• Automobile insurance for vehicles owned by the business
• Crime insurance to cover losses of inventory, equipment, or cash and securities
• Professional liability insurance to protect for businesses that give advice or offer recommendations
• Business identity insurance to protect against theft of data
• Directors and officers insurance to protect those individuals against personal liability for the business
• Kidnap and ransom insurance
• terrorism insurance

In addition, any business with employees should consider obtaining employment practices liability insurance to protect against claims by employees, as well as health insurance, which is a separate purchase from all other business insurance products.