What is business insurance? Why are there all these different types, like commercial property, commercial auto, etc.? What does your business need?

When it comes to running a business, you’re likely already aware that there’s a lot to handle. From managing business expenses to overseeing operations and hiring/training your team, you’re already carrying the weight of the world – or at least the weight of your business’ future success.

Insurance is just another item to add to the list. Thankfully, with a broker, you don’t have to worry about insurance. We take care of that for you. At the same time, we also believe that a little extra knowledge goes a long way, and can help you make more informed decisions about your protection. Knowing what you’re covered for, how it works (or at least the basics), and whether your insurance is adequately protecting you or not can be a huge help for your peace of mind.

So, as such, we’ve created a quick guide to the 5 main types of business insurance, what they are, and if you need them or not.

What is a Business Owner’s Policy?

What is business insurance? What is a business owner’s policy? A business owner’s policy, or BOP, is a comprehensive insurance package containing a variety of different business insurance policies. A BOP combines multiple kinds of coverage to provide convenience and cost savings, rather than having you simply purchase all the individual policies separately.

What your BOP contains may vary. However, there are several common types of business insurance you can always expect to see one or more of contained in a BOP. Here are five of them.

Commercial General Liability Insurance

This type of insurance provides coverage for bodily injury, property damage, and personal injury claims arising from your business operations. It protects your business from lawsuits and helps cover legal expenses, medical costs, and damages awarded to the injured party.

Commercial general liability, or CGL, is one of the most common forms of business insurance and is generally needed by all business owners. If your business deals with clients physically, digitally, or has some relationship with third-parties, then CGL is crucial.

Commercial Property Insurance

Commercial property insurance, as the name suggests, covers business-owned property and infrastructure. It is designed to protect the physical assets of your business, such as buildings, equipment, inventory, and furniture, against perils like fire, theft, vandalism, and natural disasters. It helps repair or replace damaged property and ensures business continuity.

Professional Liability Insurance

Also known as errors and omissions (E&O) insurance, professional liability insurance protects professionals and their businesses against claims of negligence, errors, or omissions that result in financial losses for clients. It is commonly held by professionals like doctors, lawyers, accountants, consultants, and architects.

Professional liability insurance is like an enhanced form of CGL, going beyond covering third-party claims to covering claims that would be filed against you because of the professional service or advice you sell – or failed to provide. It isn’t necessary for every business, but professionals may be contractually obligated to carry it.

Workers’ Compensation Insurance

Any business that has employees needs this insurance. Workers’ compensation insurance is mandatory in most jurisdictions and provides benefits to employees who suffer work-related injuries or illnesses. It covers medical expenses, lost wages, and rehabilitation costs. This is especially prominent within the construction industry.

This insurance can also protect employers from potential lawsuits by employees by offering a settlement for their injuries or illness in exchange for the agreement not to sue.

Commercial Auto Insurance

If your business has vehicles – even just one or two sedans to deliver a product or drive employees to worksites – then it needs commercial auto insurance. It covers damages and liability resulting from accidents involving your business vehicles. This insurance can provide coverage for collision, liability, comprehensive, medical payments, and uninsured/underinsured motorists.

While these are easily the most common types of business insurance, these aren’t all the kinds of business insurance that exist. Your business may very well benefit from any of the list above, but it may also need more than what is listed. It may need special, tailored coverage containing the policies unique to its specific insurance needs.

Ultimately, this is where having a broker comes in. LMBF’s brokers are some of Quebec’s best and can help you get “covered in blue” easier.

What Business Insurance Do I Need?

That depends. What kind of business do you run? How big is the business? How many employees do you have? What do you do? All of these questions – and more – are imperative to knowing exactly what business insurance your enterprise needs. The answer will always vary.

Therein lies the need for expertise: for a broker. LMBF is a Quebec insurance brokerage that has been operating for over 50 years and specializes in helping businesses get the coverage that they need. LMBF works on finding you affordable and comprehensive insurance in the province of Quebec and gets you covered in blue ASAP. Get a free quote with us today to start.