When starting or running a small business, the type and limit of commercial insurance one carries is very important. The kind of insurance that may be necessary varies quite a bit, depending on the industry and particular kind of business. There are a few types of commercial insurance.

General liability insurance helps protect businesses from claims of bodily injury or property damage. For example, if a customer slips in a store, this coverage can help pay for their medical treatment. Many small business owners also get general liability coverage that includes product liability insurance. This helps protect them from claims of bodily injury or property damage that their products cause.

Professional liability insurance covers claims related to mistakes in the professional services a company provides. This coverage is also known as errors and omissions insurance or professional indemnity insurance. So, for example, if an accounting firm makes a mistake in a client’s financial statement, professional liability insurance can help cover legal costs.

Business income coverage, also known as business interruption insurance, can help recover lost income if a business has to close because of a covered incident. So, for example, if a fire damages a restaurant and the owner needs to close temporarily, this coverage can help pay for lost income during this period.

Commercial property insurance helps cover the costs of damage to a business property, including furniture, tools, and equipment. For instance, if a storm damages the roof, this coverage can help pay for the repairs.

Workers’ Compensation insurance provides benefits to employees if they get injured or sick from their job. In most states, this coverage is a legal requirement. So, for example, if an employee develops carpal tunnel from years of typing, this coverage can help pay their medical bills.

Commercial auto insurance helps cover the costs of car accidents that employees have while driving for work. For example, if an employee swerves off the road while driving to work in a company vehicle and hits a mailbox, this coverage can help pay for the damages.

Employment practices liability insurance, also known as employers’ liability insurance, is a type of coverage that helps protect a company owner from claims of discrimination, wrongful termination, and more. So, if an employee files a lawsuit against a business for harassment, this coverage can help pay legal expenses. A Business Owner’s Policy is one of the most popular packages. It combines general liability, property insurance, and business income coverage.

Getting the right business insurance coverage is similar to getting the right insurance for a house. Both are widely considered to be among the most important investments anyone can make.

Jeffrey Lee has over a decade of experience in the insurance industry, and is currently the Sales Director of the Amy Alward Agency, the largest Allstate agency in Maine.