What Type of Business Insurance Do YOU Need?


All businesses need insurance. However, choosing the correct options can be daunting. Complying with the laws and determining which plans provide the right amount and type of coverage is essential. Here, we go over some of the basics to help answer some of your questions regarding business insurance.

What the Law Requires

The insurance requirements vary depending on the type of your business and whether or not you have employees.

The law requires that businesses with employees carry worker’s compensation coverage.

Worker’s compensation pays the medical expenses for employees who are injured on the job. It also covers some wage loss during treatment and recovery. In addition to helping injured employees, this insurance protects employers from civil lawsuits resulting from injuries that occur while on the job.

If you use one or more vehicles for business purposes, the law requires commercial vehicle coverage. This applies no matter the amount of employees you have. Aside from complying with the law, having commercial auto insurance is a good idea because many non-commercial policies don’t cover work related incidents.


  • General Liability

General liability insurance protects you in the case of a client’s bodily harm or property damage. A classic example is a slip and fall incident. General liability will cover these claims. This also applies to accidental damage to a client’s property as a result of using your product or service.

Professional liability insurance is often paired with general liability. Also referred to as errors and omissions coverage, this insurance protects you in the event you or your business is sued for negligent practice. Even if no negligence occurred, and the law rules in your favor, this insurance covers legal fees that can pile up quickly. If you have a business that provides any service or product in exchange for a fee, this important insurance protects you from founded and unfounded lawsuits by clients and customers.

Property Insurance

There are several options when it comes to property insurance. Whether your business is large or home-based, this insurance is essential in the event of weather, fire, theft, and other hazards.

  • Comprehensive insurance is a broad insurance that covers loss and damage to property and inventory. There are certain specific exclusions, which other property insurances cover.
  • Peril-specific property insurance policies cover your property, structures, and inventory in the case of fire or smoke damage.
  • Windstorm insurance covers damage due to heavy storms or hurricanes.
  • Machinery insurance covers the expense of damaged property and inventory due to equipment failure.

Builder’s Risk Insurance

This is an important insurance if you have a building or buildings under construction. It might be considered another form of property insurance; however, it caters specifically to construction projects. This covers property and materials while the building is undergoing construction. This includes new builds as well as remodels. This insurance is important for contractors, home builders, and building owners in general. The coverage usually includes incidents such as fire, theft and vandalism, and storm damage.

Depending on the type and size of your business, there are certain insurances the law may require you to have. Aside from these, optional insurances are necessary in order to protect you from any number of possible incidents. Which ones you need depends on your business and your risks.

It’s important to work with your insurance provider to form a coverage plan that works best with your business. At Surmount Insurance Services, we specialize in pairing business owners with type and amount of insurance that’s just right for them. Contact us today for more information or to get started building your plan.

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