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Types of Business Insurance Every Entrepreneur Should Know About

Launching a business is exciting, but it also comes with risks. To safeguard your hard work, it’s important to understand the types of insurance that can protect your venture.

Business Insurance Every Entrepreneur Should Know About

Here are seven essential types every entrepreneur should know about.

General Liability Insurance

General Liability Insurance is fundamental for any business. It covers claims involving bodily injury, property damage, and advertising mistakes. Whether you own a small shop or run a service-based business, this insurance protects you from potential liabilities.

Product Liability Insurance

If your business sells physical products, Product Liability Insurance is a must. It shields you from claims related to product defects that cause harm to consumers. Whether you’re a small artisan or a large manufacturer, this insurance safeguards you from financial losses due to product-related lawsuits.

Professional Liability Insurance Coverage

Also known as Errors and Omissions (E&O) coverage, Professional Liability Insurance is vital for service-based businesses. It protects against claims of negligence or failure to deliver promised services. Whether you’re a consultant or an architect, this insurance covers legal fees and damages if clients accuse you of errors.

Commercial Property Insurance

Commercial Property Insurance protects your business assets from various threats like fire, theft, and natural disasters. It covers not only the physical structure but also equipment and inventory. Whether you own or rent a space, this insurance ensures your business can recover without facing significant financial losses.

Home-Based Business Insurance

For entrepreneurs running businesses from home, standard homeowner’s policies may not be enough. Home-Based Business Insurance fills this gap by protecting against business risks associated with home operations. It covers both business and home assets under a single policy, offering peace of mind for home-based entrepreneurs.

Business Interruption Insurance

Unexpected events can disrupt business operations and cause financial strain. Business Interruption Insurance provides compensation for lost income during such times. Whether it’s a fire or a mandatory evacuation, this insurance covers essential expenses like rent and payroll, helping your business rebound quickly.

Workers’ Compensation Insurance

Once you employ personnel, Workers’ Compensation Insurance becomes mandatory in most states. It covers medical costs and missed earnings for employees injured at work, protecting both your employees and your business from legal repercussions.

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