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Businesses face many risks - from physical damage to lost revenue to personal injury court cases. To help them keep afloat after losses, businesses can buy many types of business insurance that cover liability and direct damage as well as protection for employees.
What is business insurance and why do I need it?
Accidents can happen and any business runs the risk of losing its reputation, cash flow and ability to survive if disaster strikes.
If an employee makes a mistake or a customer slips on your property, you could be liable for costs or get sued. Let’s say you’re a plumber and you incorrectly fix a pipe for a restaurant, which forces it to stop operating for a month. You could be forced to pay out what the restaurant would have earned in that time.
This is why business insurance exists. It offers protection for a range of things like getting sued and much more. If you don’t have insurance, you might have to pay for damages out of your own personal finances.
Types of risks that businesses take
- Injuring someone. Someone slips in your retail shop and sues you for medical bills.
- Damaging property. You own a car wash and one of your employees spills a chemical inside a car.
- Selling faulty products. You accidentally sell fruit contaminated with E. coli and your customers get sick.
- Giving incorrect advice. You provide a client with a flawed building design that needs repairs after it’s built.
- Financial mismanagement. Your company breaches safety or industry regulations and has to pay fines.
- Accidents outside your control. Your business faces a theft, fire, storm, damage or other disaster.
What are the different types of business insurance?
There are a few different types of business insurance policies out there, so you will need to decide which one is the right one for you. Below are examples of some of the types of business insurance you can find cover for:
What type of business insurance do you need?
Make sure you cross these off your list. We’ve made a table to help you determine which of the three main types of business insurance you may need:
| If your business… | You run the risk of… | Insurance can help with… | |
|---|---|---|---|
| Product liability insurance |
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| Public liability insurance |
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| Professional indemnity insurance |
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| Cyber liability insurance |
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| Management liability insurance | Companies with:
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Frequently asked questions
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