Not sure if your company needs insurance? Even small businesses can benefit from the protection of a personalized policy. 

There are several situations in which you may need coverage. A business policy can help secure your assets, liabilities, and ability to make money, explain those at Keep reading to understand more about what each type of plan can do for you.

Protects Your Property

This type of policy is sometimes called commercial property insurance. It helps protect your company’s physical location and assets located there.

You’ll need a property policy to cover furniture, tools, and documents. It pays for expenses resulting from events like theft or fire.

Covers Liability Claims

This type of insurance helps cover expenses related to liability. You may need this if a customer trips and falls on your property and chooses to sue your business.

Saves Your Business from Income Interruption

This type of insurance can help you replace lost income due to temporary business suspension. It covers interruptions due to events like fires and natural disasters. Usually, this isn’t a separate policy, but rather part of a property or casualty policy.

If your company has to close for an extended period, the loss of income can be significant. Income interruption coverage can keep you from having to go out of business. It pays for expenses like payroll, rent, and utilities during the time you can’t be open.

Mandatory in Some States

In some places, companies must hold specific types of insurance. A high percentage of U.S. states require businesses with employees to have the following types of insurance:

  • Disability
  • Workers’ compensation
  • Unemployment

Disability and workers’ compensation insurance provide financial help to employees who can’t work due to injuries or illnesses. In the case of workers’ comp, the problem must be job-related. Unemployment coverage pays benefits to workers who lose their jobs without being at fault.

Specialized Coverage

Depending on your line of work, you may need other specialized types of policies like the following:

  • Errors and omissions – covers liability due to mistakes or bad advice
  • Fiduciary and crime – protects in case of employee-related loss like embezzlement, theft or other illegal activities
  • Auto – covers your company’s vehicles against accidents, theft, vandalism, and liability
  • Equipment – reimburses for losses of equipment, inventory, and supplies
  • Data breach – protects against cyber attacks

It’s wise to research what kinds of coverage are typical for your line of business. For example, a restaurant’s policy may look very different from a mechanic’s. Be sure to check what’s the best combination of coverage for your company.


Your business needs insurance for several reasons. It can protect your property and cover liability claims. You can also receive compensation if you’re unable to operate your business for a time.

Employee-related insurance is mandatory in many places. You may also need specific additional coverage depending on your business activities. Insurance is essential to keep your company’s property and assets safe.