Have you considered all the risks that your business may face in the years to come? More importantly, are you adequately covered against all possible losses? When deciding on business insurance, it’s a good idea to be aware of your options.

Determining your business insurance requirements can be quite complex. With all the challenges accompanying operating a business, worrying about the unexpected should not be part of the deal. To help you devise a suitable plan for insuring your business, I’ve compiled a list of 8 types of business insurance that should allow you to move forward with confidence. Secure in the knowledge that you are protected from losses that could otherwise be detrimental to the growth and prosperity of your enterprise.

What types of business insurance are available to you?

Depending on the type of business you operate, and the risks you may face, any of the following small business options could be a good idea.

• 1. General Liability Insurance: For most businesses, this is a basic necessity, protecting you from claims relating to bodily injuries, damage to property (any personal belongings), and personal injury (like liable or slander).
• 2. Commercial Property Insurance: Covers business premises that are rented or owned, as well as equipment. You may require additional insurance for natural disasters, like floods or earthquakes.
• 3. Business Income Insurance: Also known as Business interruption insurance, you are covered for loss of income when you are unable to run your business because of damage to property. This helps you pay for operating expenses like payroll, rent, and utility bills.
• 4. Professional Liability Insurance: Sometimes referred to as Errors and Emissions (E&O) Insurance, you are covered against legal action resulting from mistakes relating to the services that you provide.
• 5. Workers’ Compensation Insurance: If your employees are injured or become ill resulting from work-related activities, workers’ compensation insurance will pay for their medical bills as well as ongoing medical care, like physical therapy. It will also cover lost wages and funeral costs if they pass away as a result of injuries or illness in the workplace.
• 6. Data Breach Insurance: This type of business insurance is often called cyber insurance and protects you against a data breach in which personal information is stolen. It will help cover the cost of notifying people affected by the breach, provide services to monitor identity theft, and run public relations campaigns.
• 7. Commercial Umbrella Insurance: In some instances, your liability insurance may not be sufficient to cover all the costs involved. Commercial umbrella insurance will pay for these additional expenses.
• 8. Commercial Auto Insurance: Protects people driving company vehicles in the event of an auto accident. You and your employees will be covered for bodily injury claims and property damage.

Conclusion

Before deciding on what type of business insurance you need, check what laws are applicable to your business. Some states require specific types of insurance relating to the industry you’re in. In most states, workers’ compensation insurance is mandatory.

Regardless of what the legal requirements are, business insurance should be assessed based on the risks you face. Conduct a comprehensive risk analysis. Often, a professional assessment is the best way to accurately determine what types of business insurance you require.

While you may feel that business insurance premiums are an unwanted expense, the consequences of being underinsured can be dire. As the old saying goes: It’s better to have it and not need it, than to need it and not have it.