In some cases, business insurance is required by law

For example, most states require workers’ compensation insurance if you have employees. And some states have requirements to get a business license, such as a general contractor or electrician license.

What are the different types of business insurance?

Business insurance involves a package of different types of coverage (also known as an insurance policy). You can choose the policies you need based on your operations and potential risks.
Here are some examples of common types of business insurance:

• General liability: Think about what kind of accidents, natural disasters, or lawsuits could damage your business. For example, if your business is located in a commercial area that is at risk from seasonal events such as fire or hail storms, commercial property insurance will help protect against loss.
• Professional liability: Professional liability insurance can help protect your business from professional mistakes. This kind of coverage is also known as errors and omissions (E&O) insurance. It is common for professional services.
• Workers’ compensation: Workers’ compensation insurance covers workplace injuries. If an employee gets hurt on the job, it can help pay for medical expenses and cover lost wages. It’s often required by state law when you have employees. You can also protect yourself by opting for voluntary business owner’s coverage.
• Commercial property insurance: Commercial property insurance can help protect many of the physical items you need to do business. It can help pay replacement costs if your business property is damaged by water, fire, wind or vandalism. A business owner’s policy (BOP insurance) combines general liability insurance and commercial property. It is often cheaper to bundle these two policies than buy them separately.
• Commercial auto insurance: Commercial auto insurance** is for small business owners who own or drive vehicles. It can help pay for damages if you or an employee are involved in an auto accident while driving for business.

Get Recommendations on the Types of Business Insurance You May Need

Regardless of the size of your business and any industry trends, business insurance coverage is important. It can give startups a good foundation when they open their doors for the first time. And it’s important for experienced business owners too, because depending on your business and your types of insurance, policy needs may change over time.

We’re an insurance company backed by more than 200 years of experience and we’ve helped more than 1 million small business owners. Our specialists want to do the same for you. We can work with you to get the types of business insurance your company needs. Get a business insurance quote today and learn how we can help you.

Do I need business insurance to work from home?

Though it’s not a requirement to have business insurance when working from home, it might be worth considering. If you work from home regularly, you should think about your home insurance.

For example, if you store stock or expensive equipment in your home, it should be covered against theft or damage. If you offer online services or handle client data, you might want to consider professional indemnity insurance. If you have clients visit your home for meetings, public liability insurance will offer protection should they have an accident or suffer an injury while on your premises.