Professional liability insurance—This type of insurance is also known as errors and omissions (E&O) insurance. It can protect your business against claims that a service you provided caused a client to suffer due to a mistake on your part or because you failed to perform a service.

General liability insurance—This covers expenses and attorney fees resulting from injuries or property damage claims for which your business may be legally responsible. General liability insurance may cover costs that accrue if an injured third party decides to sue your business. General liability insurance policies typically have four coverage elements:

Premises liability covers you if a person not employed at your business becomes injured on your property.

Products liability covers you if a product or service causes injury to someone’s body or inflicts damage on a consumer’s personal property. 

A personal injury is when your business inflicts physical, financial or mental damage to a third party.

Advertisement injuries are caused by alleged misinformation, copyright infringement or slander made by your business.

Commercial property insurance—This coverage helps you if your business experiences a loss because of a fire, explosion, burst pipe, storm or theft. This type of policy provides compensation for losses or damage to your building, leased or owned equipment and other property on the premises.

Workers’ compensation—This type of insurance is required in most states and is used to cover medical bills or wage replacement for employees who experience a work-related injury or illness.

Commercial auto—This type of insurance helps cover the costs of an auto accident if you or an employee is at fault. This coverage can help pay for damaged property and medical expenses.