Here are some major types of business insurance every business owner should consider:

1. General Liability Insurance

This insurance protects a business from lawsuits arising from damage caused (unintentionally) to a third party or third-party property by people related to the business. Without this insurance, the business owner would have to bear all the recovery costs.

2. Professional Liability Insurance

Also known as Errors and Omissions insurance, this protects a business against damages related to professional services. For instance, if a business lies to its client for personal gain, breaches a contract, or fails to meet client requirements, the client may file a lawsuit. This insurance helps cover the costs in such situations.

3. Employee Insurance Policy

Known as Worker’s Compensation, this insurance provides medical coverage to employees on behalf of their employer.

4. Property Insurance

This policy covers the assets of the business, such as vital documents, furniture, equipment, etc., in case of theft, fire, or storms. However, most insurances do not cover property loss due to floods.

5. Commercial Vehicle Insurance

Commercial vehicle insurance covers vehicles used for business purposes, such as passenger-carrying vehicles, cabs and taxis, tractors, cranes and trailers, and goods-carrying vehicles. It covers damages caused to these vehicles by a third party or damages caused by these vehicles to a third party.

6. Business Interruption Insurance

This insurance covers the financial loss a business suffers after an unforeseen event that prevents the business from operating for a certain period.