Insurance Read Time: 3 min

What Kind of Business Insurance Do I Need?

As a business owner, protecting your investment is a major concern. That starts with having the right kind of insurance that will keep you covered in the event of unexpected circumstances. Depending on the type of business you have, there are a number of insurance coverage options that may apply to you. If you’re working on a smaller scale, business insurance is just as important, especially as you grow.

Even if you have an LLC, which offers limited protections, taking the additional step to acquire business insurance can be helpful when facing lawsuits and personal liability concerns. Understanding the four major types of insurance coverage will help you make a better decision about the right coverage for you:

General Liability

This will cover your business in the event someone gets hurt, there is any property damage, there are claims of slander against your business, if you need an attorney, and more. When considering general liability, there are additional add-ons you can attach to your policy to meet your specific needs.


If you have any equipment or buildings, you will need property insurance to cover them in the event of a fire, inclement weather hazards, theft, or other unexpected occurrences. This is crucial if you have invested in large machinery, have multiple locations, or have data that could jeopardize the operations of your business if lost or damaged.

Commercial Auto

Do you drive your vehicle for work? Do you have any employees driving for the business that deliver or carry equipment or products? You’ll need commercial auto insurance to cover the vehicles and employees driving them. If your employees are driving their own cars, you should have a non-owned auto liability policy in place.

Business Owner Policy

A business owner policy rolls a number of coverages into one, saving time and money. This type of policy usually includes property insurance, liability insurance, vehicle coverage, business interruption insurance, and other types of coverage that are specific to your needs. This type of policy is usually more cost-effective than having a number of separate insurance policies.

Worker’s Compensation

Although some states do not require business owners to carry it, worker’s compensation will cover any employees who are injured on the job. It helps provide wage replacement and positions you as an employer that cares about your employees. It also protects your business in the event of a lawsuit due to negligence.

Professional Liability

If you work in professional services, this is definitely a policy that would work in your favor. This type of insurance protects you against slander or disgruntled clients that feel they did not receive the service they deserved. This is also called errors and omissions insurance and is not covered under the general liability umbrella.

All of these types of policies are beneficial to business owners and will help protect their interests from top to bottom. Not having insurance in place could be detrimental, especially when you really need it. Speaking to an insurance professional can help you choose the right type of insurance for your business that will be cost-effective while protecting the interests of your company and employees.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

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