There are three main types of commercial insurance: property insurance, liability insurance, and workers’ compensation insurance. Generally, business property damage is covered by property insurance, damages to third parties are covered by liability insurance and workers’ compensation covers employee injuries that occur while on the job. You may choose to purchase additional insurance coverage depending on your business needs.
This type of insurance covers any damages to real property or personal property. It would cover something like fire damage to your business property. Additional coverages might include
- Debris Removal
- Glass Insurance
- Business Interruption
- Builder’s Risk
This type of commercial insurance covers injuries you cause to third parties. It covers the cost defending and resolving issues associated with personal injuries or property damage. There are much more specialized liability insurance that provides extra coverage for certain businesses. For instance, professionals might need malpractice insurance.
Workers’ Compensation Insurance
Businesses with employees are required by state law to carry this type of insurance. It covers against on-the-job injuries to employees. It can protect you from potential negligence suits brought by an employee.
Property, liability and workers’ compensation insurance are necessary for any business. There are other types of insurance that might be necessary for your specific business. Do your research or talk to an insurance agent to make sure you are covered.