Starting a new business can turn your head in a lot of different directions, and it can be difficult to remain focused upon the things that matter most for your operation. Being a successful business owner means that you’ve covered all of your bases.

A cautious entrepreneur knows what insurance coverage will best serve to preserve the business. If you’re looking to further educate yourself on what you’ll need to keep your operation protected, check out this brief overview of a few of the most vital types of business insurance.

Workers’ Compensation Insurance

Nearly every state in the U.S. legally requires business owners to carry a Workers’ Compensation Insurance policy to protect their employees. Should something unfortunate occur on the “clock,” your business needs to be able to provide supplemental financial support for the individual who was injured.

If your organization fails to provide the required support of Workers’ Compensation Insurance, your business could face serious legal issues. Invest in this insurance, so your workers’ can have peace of mind.

Product Liability Insurance

Product Liability Insurance is available to assure that your business doesn’t go under if one of your products happens to malfunction and hurt someone. You could have a perfectly run operation and still produce a defective product on occasion.

It’s nearly impossible to control all of the variables involved in producing a perfect product, and there’s no way to guarantee perfection 100 percent of the time. Product Liability Insurance will cover any financial incursion imposed upon the company as a result of a faulty product.

Professional Liability Insurance

Professional Liability Insurance covers your organization in the case of a rogue employee. Not everyone follows the rules 100 percent of the time, and an unprofessional employee can do a lot of damage to the brand if left unchecked.

Professional Liability Insurance can minimize the impact of a professional indiscretion, and a cautious entrepreneur understands the risk involved in hiring more and more professionals for the business. The professional curve can become unstable quickly with only one bad seed.

Business Interruption Insurance

Business Interruption Insurance is built to protect businesses with brick and mortar locations. Should a natural disaster impose downtime on your organization, Business Interruption Insurance picks up the tab for all expenses accrued when your operation simply cannot operate.

Property Insurance

If your business owns or leases a physical property, you need to have a reliable Property Insurance policy. Your Property Insurance policy will cover the financial incursion of damage to the physical property needed to complete tasks in the business.

If a flood washes through your retail shop, your property insurance is there to cover the damages. It’s important to thoroughly understand exactly what is covered by your policy, so there are no surprises in the event of an emergency.

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to