If you don’t know what type of commercial liability insurance you need, then you should take a look at some of the common types of insurance, detailed below. Evaluate your business’s needs in comparison to what the different types of insurance cover. There are five main types of insurance that every small business should at least consider when getting started; read on to learn about them.

5 Types of Commercial Liability Insurance You May Need

1. General Liability Insurance

General commercial liability insurance covers accidents, injuries, and general negligence claims against your business. If somebody is harmed on your property and suffers a bodily injury because of it, then general liability insurance will pay out if the person sues you.

A general liability policy covers numerous things. Some of the things it will pay out for include slander, libel, property damage, medical expenses, emotional suffering due to bodily injury, and more depending on the policy.

2. Product Liability Insurance

If your small business manufactures products, then you’ll definitely need product liability insurance. This covers you if your product injures a customer due to a faulty batch or a problematic manufacturing process. The type of product your business sells will also influence what you need in your product liability insurance policy.

For example, if you manufacture electronics, then they have a risk of malfunctioning, so you need to ensure you have quite a strong policy that can cover a lot of potential damages. You won’t need to spend as much on product liability insurance if you sell knitted goods or other forms of clothing.

3. Professional Liability Insurance

You may know of professional liability insurance as “errors and omissions insurance.” Businesses that provide services to clients are most likely to need this. It protects your business in case one of your workers is negligent or commits some form of malpractice/an error when dealing with a customer.

For example, let’s say you have a business that gives out business advice. A customer may find that one of your advisers has given them advice that was actually detrimental to their business. Perhaps the adviser gave this advice because they were negligent and didn’t fully listen to what the client was saying about the type of business they operated. As a result, the client may choose to sue the negligent adviser. Professional liability insurance will pay out under these circumstances.

4. Commercial Property Insurance

Businesses should have commercial property insurance, even if your business operates from a single room in your house. Commercial property insurance will pay out if your company property is lost or damaged due to storms, fire, smoke, or vandalism. This type of insurance doesn’t just cover your premises; it can cover lost income, disruption to operations, and damaged/stolen property, too.

5. Home-Based Business Insurance

If you operate your business from home, then you need to consider home-based business insurance. Your homeowners’ insurance policy won’t cover any business losses that occur from a business that you run from home.

There are many other types of insurance that you may wish to look into, but the five types of insurance above are a good starting point for any new business owner. Ensure you’re covered by the policies your business needs so you don’t end up bankrupt in case of a mishap.