What Are the 4 Types of Business Insurance?

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Overview of Business Insurance

Business insurance is essential to protect your company from financial loss in case of accidents or crises. It includes various types of coverage like general liability, workers’ compensation, and property insurance.

Types of Business Insurance

  1. General Liability Insurance

    • Shields a business from claims of bodily injury, personal injury, or property damage.
    • Every company must have general liability insurance.

  2. Workers’ Compensation Insurance

    • Protects a business from liability in case an employee is injured on the job.
    • Essential coverage for new businesses to avoid financial strain.

  3. Crime Insurance

    • Vital policy to cover theft, property damage, or fraud as technology advances.

Recommended Business Insurances

Four important insurance types for all businesses:

  • Professional liability insurance (O&E insurance)
  • Business owner’s policy (BOP) which includes general liability, property damage, and other coverages.

Legal Obligations and Insurance Requirements

  • Employers are legally required to have general liability insurance if anyone works for them.
  • Plumber’s liability insurance is recommended for self-employed plumbers.

4 Most Important Types of Insurance

  1. Auto Insurance

    • Pays for damages from car accidents.

  2. Health Insurance

    • Covers medical expenses for doctor visits and hospital stays.

  3. Life Insurance

    • Provides financial support to your family upon your passing.

  4. Property Insurance

    • Protects business property and equipment from disasters and theft.

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