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What are the four types of business insurance?

On Behalf of | Dec 14, 2022 | Insurance Disputes

California business owners should do whatever they can to protect themselves and their investments. While there are many types of insurance available to business owners, there are four main types that may be worth considering. An attorney specializing in business and insurance matters can help determine what type of coverage you need for your business.

What types of business insurance should I consider?

Each type of business insurance will offer coverage for different issues that may arise for business owners. These are some of the main types of insurance you should consider:

  • General liability: General liability insurance protects you from being liable for personal or bodily injury or property damage that occurs on your property (e.g., injuries caused by slip-and-fall accidents). This insurance can cover medical expenses, legal fees and other costs stemming from the incident.
  • Commercial property: Commercial property insurance covers property damage, resulting from natural disasters, vandalism, and other events.
  • Business interruption: Business interruption insurance covers employee salary and bills if you must close your business temporarily due to a fire or other catastrophe.
  • Professional liability: Professional liability insurance covers you if you make a mistake that harms a client or customer of your business.

Generally, a business owner policy (BOP) will include commercial general liability insurance, property insurance and business income insurance. However, you may also consider additional coverage for employment practices liability, cyber liability and directors and officers.

It is almost impossible to protect yourself and your company from every possible risk. Even with insurance, it is possible that your insurer will deny you coverage and refuse to cover a certain loss, leading to an insurance dispute. An attorney can advise you on which types of insurance make the most sense for your business and how to best protect yourself.