Life is full of uncertainties, including the things that can affect the operations of your business. Storms, natural disasters, terrorism, etc. are some of the factors that can affect your professional life.

To protect yourself and your business, you need to buy the right insurance cover. Be sure to do a business insurance check-up to ensure that your business is run smoothly.

Read on to learn about the basic types of business insurance you need for your business.

Let’s get started:

General Liability Insurance

Every business should have liability insurance. Lawsuits arising from the negligence of your business operations such as defective products that cause harm are common to businesses.

Liability insurance will pay for these damages and any legal fee up to your policy limit if you are sued.

Liability policy also covers the medical fees of people harmed or injured by your business.

Property Insurance

If you have business personal property, including computers, office equipment, inventory, etc. then you should consider buying a policy that will protect you in case of vandalism, fire, theft, smoke damage, among others.

Business property insurance policy will cover damages to your business due to a covered loss.

Business Owner’s Policy (BOP)

You should also consider having a business owner policy package. BOP’s will in, most cases, include property insurance, business interruption insurance, liability insurance, vehicle coverage, and crime insurance.

Depending on the specific needs of your company, you can change what’s included in a BOP. By choosing a BOP, a business owner will save money as the package usually costs less compared to the cumulative cost of all the individual coverages.

Worker’s Compensation

Most states require employers to have worker’s compensation insurance. However, there are some states such as Texas that do not require employers to carry worker’s compensation. Employers who have reached a certain number of employees (most often ranging from three to five depending on your state) will be required to carry worker’s insurance policy.

A worker’s compensation policy pays for medical care as well as lost wages for employees injured on the job. This policy will pay damages regardless of who caused the accident. In case an employee dies, the compensation benefits will be paid to their family.

Depending on your state laws, you might not be required to carry worker’s compensation insurance for your small business. But, even if you are not required to do so by law, it may still be advisable to carry this coverage to ensure you’re protected in the event that an employee is injured on the job.

Commercial Auto Insurance

Most often, personal auto insurance will not cover vehicles used for business purposes. You’ll need business auto insurance to protect any vehicle you use in your business operations.

The commercial auto policy will pay for property damage or bodily damage to others due to your business vehicle operations up to your policy limit. You can opt to customize your commercial auto insurance to include your specific needs like paying the cost to replace a vehicle involved in an accident.

Professionally Liability Insurance

Professional liability insurance policy is also known as Errors and Omissions Insurance. It provides defense and covers damages due to failure to render professional services or rendering them improperly.

This kind of protection is not included in your general liability policy. Professional liability insurance is needed for any professional firm such as accountants, lawyers, notaries, consultants, real estate agents, hair salons, technology providers, insurance agents, among others.

Data Breach

If you run a business that stores sensitive information about clients or employees on your servers, computers, or paper files, then you’re responsible for keeping that information safe. In case of an electronic or a paper file breach, a data breach policy will cover the related losses.

Directors and Officers Insurance

Directors and officers of a company need protection against actions that can affect the operations of the company and its profitability.

If an officer or director of your company is sued due to their actions on the job, directors and officer’s insurance will cover damages and costs that result from a lawsuit.

Pollution and Environmental Liability

Your general liability insurance policy may not include pollution, which leaves you unprotected from losses resulting from pollution-related claims and lawsuits. As a business owner, you should evaluate the various types of environmental insurance and pollution liability.

The type of pollution liability you’ll need for your business will vary depending on the type of business you own.