What Types of Business Insurance Does a Company Require?


Quick Answer

Business owners should consider purchasing general liability insurance, property insurance, workers' compensation, professional liability insurance and commercial auto insurance, Forbes suggests. A business owner might also consider having a business owner's policy instead, which is a package containing all a business' specific insurance needs.

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Full Answer

Other insurance policies a business owner might consider include directors and officers, data breach, personal automobile and life insurance, informs Forbes. General liability insurance protects a business against damages causing bodily injury or property damage to a third party as a result of actions by employees, products or services of the company. Professional liability insurance provides protection in the event a business fails to properly render professional services as advertised. Types of businesses that should consider having professional liability insurance include lawyers, accountants, hair salons, technology providers and consultants.

A business might also need product liability insurance and business-interruption insurance, explains Entrepreneur. Product liability insurance applies to businesses manufacturing a product sold to the general public. It protects against lawsuits for potential damages caused by the product. Product liability insurance is typically custom-made to meet the potential hazards of a specific product. Business-interruption insurance protects a business from lost income as a result of a lawsuit or other event, and it generally benefits companies with physical locations, such as retail stores.

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