Business Insurance Plans: Which to Purchase and How They Protect Your Company

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If you're a business owner, you have no doubt spent some restless nights thinking about what would happen if someone sued you. Everything from a server outage to a car accident can land your business in court. That is why acquiring business lawsuit insurance is so important. Below are some types of business insurance that can help keep your company safe and put your mind at ease.

General Liability Insurance

General liability insurance is the most common type of insurance businesses purchase, and in some cases, business owners are required to carry this policy. This insurance covers the cost of lawsuits brought by someone outside your company. Often pretty affordable, the average price for general liability insurance ranges from $340 to $600 a year, according to TechInsurance.

That yearly rate for a general liability policy can pay for lawsuits over:

  • Copyright infringement
  • Property damage
  • Customer injury
  • Accusations of defamation

Cyber Liability Insurance

If you're worried about costs related to data breaches and other cyber incidents, purchasing cyber liability insurance could have you covered. Cyber liability insurance covers legal fees and damages like:

  • Customer breach notifications
  • Regulatory fines and penalties
  • Crisis management and public relations

There are two types of cyber liability insurance.

  • First-party cyber liability insurance: this plan would cover a data breach or cyberattack against your business.
  • Third-party cyber liability insurance: this plan pays for lawsuits related to a data breach.

Errors and Omissions Insurance

Also known as professional liability insurance, errors and omissions insurance (E&O) protects businesses from third-party lawsuits related to mistakes, negligence, and professional oversights.

Specific things this insurance covers include:

  • Incomplete work
  • Missed deadlines
  • Work errors
  • Undelivered services
  • Breach of contract
  • Budget overruns

E&O insurance will protect your business from lawsuits no matter who is at fault. Any company that offers expert advice or provides services should consider purchasing an errors and omissions plan.

Business Auto Insurance

If your company owns vehicles, you should invest in business auto insurance. This insurance ensures you are covered if one of your company's vehicles is involved in an accident. Business auto insurance covers:

  • Liability damages
  • Damages sustained by occupants of your business vehicles
  • Collision or comprehensive damage

Workers Compensation Insurance

Workers compensation insurance protects your business if an employee gets sick or injured while on the job. In some states, workers compensation insurance is required. Workers compensation insurance covers:

  • Death benefits
  • Disability benefits
  • Compensation for lost wages
  • Medical expenses
  • Lawsuits

No matter the size of your company, big or small, business insurance is a must to keep everything you've worked so hard for safe. The trusted experts at Insurance Lounge have the knowledge and expertise to help you choose the right policy. For more information on business insurance policies, call us at 1 (800) 211-8600 or visit one of our four storefronts located throughout the Beaver State.

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