Starting or running a business is no small feat. You pour time, energy and passion into your work. Of course, protecting it financially is just as important as building it. But how do you know which insurance policies to consider?

Let’s look at which types of coverage your business may need — and how that coverage can protect it from unexpected events.

Business automobile insurance

Does your company own vehicles or use vehicles continuously (e.g., delivery or service trucks or sales team cars)? If so, you might want to invest in business automobile insurance, which helps protect your company (and staff) in the event of accidents, theft or damage.

After all, personal car insurance typically doesn’t cut it for work-related driving, and that could put your business and cash flow in a tight spot if something were to happen.

So, if you or your employees are using vehicles to take care of business, this type of coverage might be a top priority.

Commercial property insurance

Bad stuff happens to good people all the time. And sometimes those unfortunate events come with hefty price tags. Fires, storms, vandalism — you name it, there’s always a chance that something could impact your business property.

Commercial property insurance helps cover damage to a structure and everything inside it, including equipment, furniture and inventory. That can help your business recover faster after a major setback, without requiring you to drain your other assets.

Investment and rental property insurance

Do your business assets include investment or rental properties?

If so, it might be smart to protect them with the right policy in case the unexpected — fire, major storm — occurs. Rental property insurance helps cover the structure, liability and even lost rental income.

Directors and officers (D&O) insurance

Running a business means making tough decisions in the best interest of the company, even if some stakeholders don’t agree with those decisions.

D&O insurance protects the personal assets of your company’s leadership — directors and officers — if they’re ever sued for decisions made on the job. It can prove essential for keeping your leadership confident, secure and protected while they navigate complex choices to advance organizational goals.

Errors and omissions (E&O) insurance

Are you in the business of providing advice or services? E&O insurance protects you against claims of mistakes, negligence or missed deadlines that could trigger financial loss for a client.

This type of coverage is helpful for consultants, marketing firms, freelancers and IT professionals, and not just for liability protection. In fact, some of your prospective clients, particularly larger enterprises and governmental entities, may require proof of your E&O policy to add you as a vendor. Being covered can help speed up the contract approval process.

General liability insurance

For many business owners and leaders, there’s one type of policy that is essential — general liability¹ coverage.

It provides protection against costs related to everyday risks such as customer injuries, property damage and legal fees. For example, if someone slips on the floor in your salon, or if your employee accidentally breaks a client’s laptop, general liability helps cover those costs, so your business doesn’t take the financial hit.

Business owners policy (BOP)

One popular solution for companies that want to bundle policies — typically general liability and commercial property coverage — is a BOP. Not only does it help protect you from claims and address damage in the wake of an accident or natural disaster, but also it may be more cost-effective than purchasing each type of insurance separately. And you can customize your coverage, too.

Workers compensation insurance

Your team matters, and they make your business work. That means protecting your employees² is also a way of protecting your business.

“Workers comp” insurance helps cover medical expenses and lost wages if an employee gets hurt on the job. In every state except Texas, it’s legally required once you have employees. Yet, wherever your company is based, workers comp insurance shows your employees that their company has their backs.

The takeaway

After reviewing this list of business insurance types, you may have a clearer picture of which coverage options you need. Or you may still have questions. Either way, collaborating with a team of licensed insurance agents is the next step to ensuring you get the coverage your company needs.

At RBFCU Insurance Agency, we make business insurance easy to understand and even easier to manage. Our friendly staff is here to help you choose the right business coverage at the right price. Already have coverage? We’re happy to offer a second opinion to see if we can help you save more money. Call or request a quote online today.