Four Different Types of Business Insurance You Should Understand

Thriving in the business competition and becoming successful in the industry takes time, effort, and passion from an entrepreneur. However, since Day One, when you began your entrepreneurial career, varying risks already exist. Fire, disasters, and legal suits can wipe the fruits of hard work. Thus, as a business owner, you need a lifeline called insurance.

Fortunately, other business insurance offers, like restaurant insurance cost, are out there to protect your budding firm from potential threats. Here are the four common types of business insurance you should know before tapping small business insurance, California.

#1: Professional liability insurance

Professionals like accountants, lawyers, and physicians need to acquire professional liability insurance, also known as errors and omissions (E&O), as general liability insurance policies are not immune to business or professional negligence, malpractice, or misrepresentation claims. This insurance varies from one industry to another as each has its set of concerns to address.

#2: Property insurance

Property insurance provides financial reimbursement to a business owner who owns or leases space damaged by fire or storm or robbed by thieves. However, be reminded that standard property insurance policies do not cover the mass destruction caused by floods and earthquakes. Therefore, it is a must for businesses prone to these issues to secure a separate policy from their insurer to get a claim.

#3: Worker’s compensation insurance

Businesses automatically add a worker’s compensation insurance once the first employee has been hired. This insurance covers the medical treatment, disability, and death benefits of employees who sustained an injury or died while rendering their service. Even employees performing low-risk work, slip-and-fall injuries, or medical conditions are covered as well by worker’s comp.

#4: Business interruption insurance

Businesses that need a physical location to manufacture or sell products should avail of business interruption insurance. It will compensate the cost of interruption that happens when a disaster occurs, forcing you and your employees from coming to the office and continuing usual business operations.

For more inquiries, call ISU Armac by contacting our main number, (760) 241-7900, fax number, (760) 241-1467, or email us at

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