Owning a business can open you to many liability issues.  An important type of business insurance is liability insurance.  This type of business insurance covers various situations that can arise.  One such common situation is bodily injury.  If a person becomes sick or injured while on your property, it can be your responsibility.  This insurance can also protect you against libel or slander suits and other liability issues. 

If you have employees, business insurance is not only essential, but in many states, the law can require it.  The most common type of business insurance that is required is called workers compensation insurance.  This coverage covers your employees' medical and other expenses in the event of injury or illness while on the job. 

You may be required to pay into state funds or participate in private plans.  Check with your state's employment department to see if this type of business insurance is required. 

Often, providers will offer several policies in one package.  One common term for these packages are called Business Owner Policies, or BOP's.  These are customized business insurance policies that combine several different options to suit your needs.  Many providers offer industry-specific packages and some will customize a package to your needs.

Umbrella insurance programs offer a relatively cheap way of extending your insurance.  It's designed to cover unexpected events that go beyond the monetary limits of your standard policies.  Umbrella insurance ensures that you are protected fully, no matter what the situation and the cost.

These are just a few examples of the types of business insurance that are available.  Your business may require different or additional types of business insurance coverage. 

It can be a complicated matter, so make sure that you get advice when you need it.  When deciding on a business insurance policy, or policies, ensure that you have the coverage you and your business needs to ensure that you're protected fully.

Part 1