This will cover lawsuits and the possible payments that may arise due to medical expenses, injury, negligence or slander.
Example: A customer spills her drink and someone else trips and falls in your store, breaks his arm, and sues you for negligence because you didn’t have a “wet floor” sign up.
Service businesses use this type of insurance to protect against payments on claims related to malpractice, errors, or omissions in the service of clients.
Example: A bride and groom who sue for damages against a photographer who accidentally loses his camera and memory card after shooting their wedding.
If your company manufactures, sells, or distributes products, product liability insurance can protect you against financial losses due to products that cause harm.
Example: Someone claims your jewelry made her skin break out, and she decides to sue you for the medical expenses.
This type of insurance protects the cost of business property (building, equipment, money, documents, etc.) from fire, hail, crime or other disturbances. Property insurance policies vary as to what types of “perils” they protect from, so make sure you get a policy that covers all the possible perils you are concerned about.
Example: Someone breaks in and steals your computers (with all your business or client documents) and expensive laser printer.
Required in most states of businesses that hire employees outside of their immediate family, workers’ compensation insurance covers medical expenses and lost income, or permanent disability, for employees injured on the job. Personal disability insurance is another type of insurance that has benefits similar to workers’ compensation but is available for the business owner.
If you conduct business with your vehicles (e.g. delivery, limousine, janitorial service/supply transport) then business auto insurance will insure your vehicles and provide injury or loss coverage.