Despite all the potential benefits, starting a business isn’t all fun and games. Even before you hire your first employee, your business is at risk.

The best way to mitigate that risk is to invest in insurance. The issue is, you can’t walk into an insurance agency and ask for “business insurance.” There are almost as many types of insurance as there are types of businesses!

That said, there are certain types of insurance that every business needs. Read on for a list of insurance policies you’ll need from the get-go.

1. General Liability Insurance

General liability insurance protects you from claims related to your business operations. It’s also known as public liability insurance. It kicks in if you damage someone else’s property or injure someone on your property.

This type of insurance is essential for any business working directly with customers. It covers any awarded damages and the costs of your defense. That includes punitive damages, where you have to pay extra money.

2. Workers’ Compensation Insurance

As the name implies, workers’ comp provides coverage for employee injuries. If your employee gets hurt on the job, workers’ comp will cover their wages and expenses. It also covers the costs of your defense if they sue you.

If your business hires employees, you’ll need workers’ comp. In fact, this type of insurance is mandatory in most states. In some regions, you even need to buy the insurance policy directly from the state.

3. Professional Liability Insurance

Professional liability insurance (PLI) protects you against negligence claims. If you make a mistake in your work that causes harm to others, PLI will cover it. This insurance type is also known as Errors & Omissions insurance.

Depending on your industry, PLI can come in many types. All industries have specific concerns that require customized policies. PLI is particularly important if you give legal, medical, financial, or engineering advice.

4. Property Insurance

As far as essential business insurance benefits go, property insurance is near the top of the list. If your business has any physical assets, you need to protect them. That’s true whether you own or lease your space.

If your business assets get stolen or damaged, property insurance will reimburse you for that. It will also cover any lost income. That said, this type of insurance usually doesn’t cover mass-destruction events.

5. Auto Insurance

This is one of those kinds of business insurance that’s easy to forget. If you have company vehicles, though, you need auto insurance. If an accident occurs, this insurance will cover the cost of injuries and damages.

At the very least, you should protect yourself against third-party injuries. If your employees are using their own vehicles, their personal insurance will cover them. The only exception is if they’re delivering goods for a fee.

Get Your Business Insurance Today!

At the end of the day, the benefits of business insurance outweigh the costs. By having the right insurance in place, you can avoid major financial losses. The above list covers all the basics you’ll need to get started!

Interested in a business insurance package tailored to your specific needs? Contact us here to get in touch with our insurance representatives!