Risks are inherent in every business, whether you have a conglomerate or a professional firm. Before you embark on any venture, you must assess your risks and insure against them. The issue is acute in countries where legal recourse is readily available and preferred, such as the USA and Europe. 

As many as 13 insurance policies for businesses are available from the companies that deal with this. We will narrow it down to 5 major covers to protect your business.

General liability insurance

Most of the firms that deal with this advise you to get the GLI or CGL (Commercial General Liability) at the time of registration of your business even before you hire a single employee. This insurance policy covers the business against bodily or physical injury to and by employees and property damage caused by the operation on the premises. It is comprehensive insurance that covers many aspects of a business. Premiums may differ depending on the scope and the amount of the coverage.

Professional liability insurance


PLI is extremely important for professional services firms. Professional liability insurance, also known as errors and omissions (E&O) covers damage caused by errors or improper services resulting in losses to the other parties. You may not incorporate these risks in your GLI or CGL. This type of coverage is needed by law, accountancy, insurance agencies, consultants, brokerage, real estate, and technology firms. If you are faced with a situation where your business is being sued, for example, you’re going to need some serious help. According to, ‘Launching a successful legal defense when being sued can be quite costly. Without the right kind of professional coverage, you could find yourself placing your personal assets at risk just to defend your business against legal accusations.’ You should consult a reputable insurance consultant to know which kind of package is suitable for your business, this way you’ll have all the corners covered. 

Fidelity insurance

If you have a growing enterprise with a certain number of employees, then you should consider fidelity insurance coverage. This type covers your business against losses arising from the dishonest or fraudulent acts of your employees. Criminal activities on the part of the employees is a real threat. It may bankrupt your business and expose it to multiple litigations depending on the enormity of the fraud. Some comprehensive policies, like Business Owner’s Policy, may incorporate such risks to a certain limit, but it is always advisable to get fidelity insurance separately. 

Property insurance

Generally, most business owners either have their own building or a property in the name of the business. Most often, the business has sizable furniture, fixtures, and equipment. The property can be damaged or destroyed by a number of factors, therefore, it makes good sense to ensure all the above against fire, theft, natural disasters, and civil commotion. You should make sure that this insurance covers deliberate acts of arson and wilful damage. 

Blanket insurance


Blanket insurance covers multiple properties and assets. It also covers many aspects including auto insurance, personal and business assets. Large businesses opt for blanket insurance. It is generally an expensive policy where you may have to extra premium, however, it saves a considerable amount because you need not take out individual policies. 

Understandably, there are many more insurance policies with distinct coverage against specific risks. The company that deals with this should be selected based on their reputation for honoring the claims. You have to decide, in consultation with your chosen insurance company, the right set of policies.