Business insurance protects companies from financial losses resulting from unexpected events during normal business operations. Depending on the policy, it can cover property damage, legal liability, employee-related risks, and business interruption. Coverage needs vary significantly by industry, size, and risk profile.
What it covers
- Public liability — injury or damage to third parties
- Professional indemnity — errors in advice or services provided
- Property and equipment damage
- Business interruption — lost income if you can’t operate
- Product liability — defects in products you sell
- Workers’ compensation — employee injury or illness
- Cyber liability — data breaches and cyber attacks
- Commercial vehicle insurance
What it doesn’t cover
- Intentional damage or fraudulent claims
- Normal wear and tear on equipment
- Losses from known risks not disclosed
- Criminal acts by the business owner
- Certain natural disasters (varies by policy and location)
How to choose
Start by identifying your mandatory coverages (workers’ comp is legally required in most places). Then assess your specific risks: do you give professional advice? Handle client data? Own a physical location? Have employees? Work with contracts that require specific insurance levels? A broker can help package the right policies for your industry.