8.2 What Type of Business Insurance do I Need?

The majority of insurance companies tailor their coverage to your specific needs, but certain basic plans are available that are appropriate for a wide range of businesses. For instance, professional business insurance is specifically designed for people in occupations like the trades, the medical field, the hospitality industry, and even professionals who work from home.

Most businesses need certain types of insurance, such business interruption insurance or generalized business insurance. These are two insurance policies designed to support one another and safeguard your company in the case of a significant loss.

Generalized business insurance protects your company from unforeseen events or legal claims, like storms, lightning, fire, floods, and theft. With the exception of your actual office, it encompasses everything you use to conduct your business. Generalized business insurance will pay for the expense of replacing any items lost within your factory or office building, allowing you to carry on as usual. While having stolen or damaged equipment and stock replaced will save you in the long run, not being able to run your business until it’s returned to you will also cost you money. Business interruption insurance might help in this situation. It will compensate your company for lost profits while it is recovering, maybe by assisting you in paying payments and reducing other losses.