What does business insurance actually cover?

If you are starting a business, it’s almost a given that you’ll need business insurance. Many entrepreneurs simply get a quote and sign up, knowing that this would be the required result after a great deal of research. But for those who wish to understand what business insurance is, there is a bit of homework which must be done.

This can help entrepreneurs better compare business insurance quotes against one another, and quite possibly save significant money on better coverage. Here are most of the important points.


This is always a necessity for traditional businesses, and even most digital ones. If one of your users, clients, or customers gets injured or incurs damages in any way, general liability insurance can cover this mishap and prevent you from having unexpected charges plague your business.

This can also help pay for a lawyer or lawyers, whatever is necessary to close legal loopholes and keep you from being liable for excessive damages.

Workers compensation

Workers compensation is one of the essential coverage necessities for any business with employees. Even if your business is digital and your employees don’t have the risks associated with skilled trades or blue collar work, there is almost certainly a way for these workers to get hurt on the job, thus exposing you to great losses for hospital bills, lost work time, chronic injury, neglect, endangerment, or any of a number of negligence of damages claims.

Business owners policy

This is a general policy that can be tweaked for the needs of your business and your industry. It can be organized to cover you just in case some disaster strikes, or in the event that you lose income due to major equipment malfunction or any of a number of other unfortunate scenarios.

It pays to spend time looking at your options and speaking to an insurance representative to understand what they are. You’ll create the perfect possibility this way and be happy about what you’re paying for.

Professional liability insurance 

If someone outside of your business should sue you for whatever reason, this is where professional liability insurance comes in handy. A customer or client might feel they are due damages because of your product or service. This will prevent you from losing income as a result.

Company auto insurance

Many businesses have vehicles that are used solely or primarily for business. If one of these vehicles is damaged, a personal auto insurance policy is not going to cover it. You business auto insurance policy most certainly will, however, so you’ll be needing this one.

Even if you are an individual who writes off miles on your taxes for business time spent driving, this could require you to get business auto insurance, especially if the accident occurs while you are using the vehicle for business.

There are many liability channels for businesses, as anyone who pays attention to business news will note. Business insurance keeps many more problems out of the news by insulating the biggest businesses from liability. Do the same for your business.

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