Insurance for small business

Types of insurance coverage

Liability Insurance

Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Source

Property Insurance

A policy that provides financial reimbursement to the owner or renter of a structure and its contents, in the event of damage or theft. Property insurance can include homeowners insurance, renters insurance, flood insurance and earthquake insurance. Source

Workers’ Compensation (WC)

A state-sponsored system that pays monetary benefits to workers who become injured or disabled in the course of their employment. Source

NOTE: In California, workers’ compensation insurance is required if you have employees. 

Business Interruption Insurance

A form of insurance coverage that replaces business income lost as a result of an event that interrupts the operations of the business, such as fire or a natural disaster. Business interruption insurance is not sold as a separate policy, but is either added to a property/casualty policy or included in a comprehensive package policy. Source

Automobile Insurance 

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Source

Home Office Insurance

Do not rely exclusively on your regular homeowners’ or renters’ policy to protect your home business, at least without checking first with the insurance company. Many of these policies do not cover business use of a home, which means that you probably won’t be protected against losses relating to your business. Source

Business Interruption Insurance

A form of insurance coverage that replaces business income lost as a result of an event that interrupts the operations of the business, such as fire or a natural disaster. Business interruption insurance is not sold as a separate policy, but is either added to a property/casualty policy or included in a comprehensive package policy. Source

Officer and Director Insurance

The policy provides protection to directors and officers of large companies against legal judgments and costs arising from unlawful acts, erroneous investment decisions, failure to maintain property, releasing confidential information, hiring and firing decisions, conflicts of interest, gross negligence and errors under many other scenarios.

Featured resources

Guide to Commercial Insurance

As a state mandated regulatory agency, the California Department of Insurance (CDI) has authority over how the insurance industry conducts business within California, and holds licensing examinations for brokers and agents. It ensures that consumers are protected and enforces the rules and regulations for the insurance industry. The CDI provides a useful guide to purchasing business insurance.