The Seven Different Types of Business Insurance

Insurance companies offer a myriad of different insurance policies to cover nearly every type of risk that a business could ever encounter. While most companies will not need to purchase every type of insurance, almost all businesses will need several. Since a company’s insurance needs will vary depending on the industry they operate in, it is best to consult with a skilled business insurance attorney to determine an insurance plan that is right for your business.

1. General Liability Insurance: Basic business insurance, commonly referred to as general liability insurance, covers businesses against any lawsuits that should arise in relation to negligence, injuries, or accidents. This insurance will help cover legal expenses and any damages your company may be ordered to pay, with the exception of punitive damages. Covered lawsuits include personal injury, property damage, false advertisement, and slander. All businesses should have this coverage.
2. Workers’ Compensation Insurance: If your business hires employees outside of your immediate family, it is important you purchase a workers’ compensation insurance policy. This policy will cover your employees’ medical expenses, lost income, and disability benefits in the event that they should suffer a work-related injury.
3. Product Liability Insurance: Does your company produce, sell, or distribute a product? You may be held liable for any injuries or harm your product should cause to consumers. Product liability insurance will protect your business against these types of claims, including design defects, manufacturing errors, and improper warnings.
4. Commercial Auto Insurance: Does your business use vehicles on a daily basis? Just like an individual person’s vehicles need to be insured, so do a business’ delivery trucks, company cars, and other business-owned vehicles. Commercial auto insurance protects against any injuries and damage that should occur involving your company’s vehicles.
5. Professional Liability Insurance: Also known as “errors and omissions” insurance, this coverage protects companies that offer professional services against malpractice and negligence claims.
6. Property Insurance: This coverage protects businesses against losses related to damage that may occur to a building’ property due to flooding, earthquakes, fires, hail, vandalism, and other disasters. Covered property includes buildings, equipment, money, documents, and business interruptions. If you run your business out of your home, you can add similar coverage onto your homeowner’s insurance policy.
7. Umbrella Policies: Anything that exceeds or is not explicitly covered under any other type of policy may be covered under a catch-all umbrella policy. While these policies generally don’t cost much, many insurance companies only offer them to business owners who have purchased the maximum coverage for all their other policies.

Knowledgeable Business Insurance Lawyer in Houston

If you are unsure of what types of insurance your business needs, or if you believe your business insurance claim has been unfairly denied, a skilled Houston business insurance attorney from Dick Law Firm, PLLC can protect your best interests and help ensure your business receives its entitled coverage. We have helped more than 1,000 clients assert their rights and can provide the hard-hitting advocacy you deserve!

Call 833-7RIGHTS or contact us online today to schedule a free consultation.