Business Insurance

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Business insurance is term that may include different types of insurance for businesses that can provide protection from liabilities, property damage and other risks. It can protect:

• Small businesses
• Self-employed
• LLCs
• Home businesses
• Other types of businesses

Small business insurance provides a financial safety net that can help pay unexpected expenses after an accident or mistake involving your customers, employees and business property.

Business Owner Policy (BOP) is designed to provide comprehensive coverage for small to medium-sized businesses. This policy is tailored to meet the needs of a wide range of industries, from retail and manufacturing to restaurants and professional services. It combines multiple coverages, such as property, general liability, and business income, into one convenient package.

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

General liability insurance, also known as business liability insurance, is often the first kind of insurance business owners purchase. It can help your business cover costs if you or an employee accidentally damage someone’s property or if someone other than an employee gets hurt (the legal term for this is bodily injury).

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 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. 

Some types of business insurance are designed for specific industries

The business insurance policies listed above are common for many different types of businesses. However, other more niche coverage options designed specifically for different types of businesses.

For example:

How much does small business insurance cost?
Business insurance costs can vary tremendously. That’s because every business has different coverage needs, potential risks and unique circumstances.
For example, insurance for a restaurant will be priced differently than for a handyman or financial advisor.
While it can be difficult to give a precise business insurance cost estimate — for that, you’ll need to get a quote for your business — here are some of the factors that help determine what your insurance will cost.

Factor 1: Number of employees
Your payroll and the number of employees could impact the amount you pay for insurance, especially with workers’ compensation.

Factor 2: Location, location, location
Where you work and the number of locations where you work are factors in your exposure to risks and how much you’ll pay for insurance.

Factor 3: Your industry
If you work in a profession that involves heavy equipment, expensive property or dangerous environments, your general liability insurance costsmight be higher than if you’re in a profession that involves sitting quietly at a desk.

Factor 4: Scope of operations
If you’re a fitness instructor who only teaches privately in people’s homes, your general liability insurance might cost less than if you offer public classes. Or, if you’re a restaurant that serves alcoholic beverages, you might pay extra to purchase liquor liability coverage.

Factor 5: Experience

Some people have spent years building up professional expertise before starting their own business. That can mean that their risk is lower than newer professionals. This risk is often reflected in the price they’ll pay for their coverage.

Commercial insurance packages can also be tailored to different business structures:

• Soleproprietorbusinessinsurance
• Self-employed business insurance
• LLC business insurance
• Home business insurance 

(information provided by Next Insurance) One of our insurance partners