Basic Types of Business Insurance for Companies of All Sizes

Whether you own a small business or run a large corporation with multiple offices, insurance is an essential expense. Consider the cost of having to cover claims against your business. It could be a major cut in the profits for a major company and be the final blow for a fledgling business. Consider the basic types of business insurance available for companies of all sizes and which ones might be right for your needs.

Liability Insurance

A company needs to be protected if it gets sued. Clients may claim the business was negligent in its services, dealings, or advice. Liability insurance will protect a company that is facing these type of charges. It can become costly to pay for the legal fees and damages associated with certain claims. A business with insurance has greater peace of mind if a claim is filed, knowing this coverage will help to take care of it.

Property and Casualty Insurance

Property and casualty insurance are often purchased together. Casualty insurance differs from property insurance because it covers the loss or damage to the actual business rather than anything it owns, possesses of leases. However, property insurance will protect a company against loss or damages incurred at your company location. Its contents are protected by this insurance as well as property that could belong to others at the time the loss occurs. It is important to read these type of policies carefully as they are clearly defined. Only certain situations are covered, such as a fire or flood. If there are other risks, you should discuss them with your insurance agent to find out if coverage is available.

Workers Compensation Insurance

Certain types of insurance could be mandatory for your business to have, such as Workers' Compensation insurance coverage. Every state has its own unique requirements for this type of policy and is a business owner's responsibility to find out what they are and be in compliance. Employees are not able to sue their employers for injuries they sustain. The employer becomes part of a system with this coverage. This system pays for the employee's medical bills and other damages if they get injured on the job.

Commercial Auto Insurance

Another type of coverage that often gets overlooked is commercial auto insurance. Not all businesses need this coverage, but it is important to find out about it. Personal auto insurance does not cover the vehicles that are used by a company. Commercial auto insurance is what covers the vehicles used for business purposes if there is an accident or incident that leads to personal injury or property damage.

These are some of the basic types of coverage businesses should carry. There are also other options, such as health insurance and life and disability insurance. Contact your insurance agent today to review your needs and find out which coverage you should get to be compliant and manage risk at your company. Otherwise, your company could be liable to pay for hundreds or even thousands of dollars in damages.


Strategic Insurance Agency Inc.
568 S Livingston Ave
Livingston, NJ 07039
(973) 422-1324