Starting a business is not enough, one should also ensure its protection and security. In order to stay on the safer side, one would intelligently opt for insurance by foreseeing the risks. Hence, covering your business with business insurance is very important. Every year, numbers of companies fail because of improper assessment of the risks or by not going for insurance coverages. Many of the business owners hesitate to invest on the insurance policies and few of them feel that they are of no use or it is simply waste of money. A business can be hit by unforeseen risks which may be natural calamities, accidents, law suits, employee injuries, business interruption etc. Business insurance helps in reducing liability, loss recovery, securing loans and investments, improving business image and stability etc.

Business insurance will protect the assets of the companies. The insurance is protected from the financial losses by the insurance company. The business insurance is suitable for all commercial trades which include contractors, property owners, contract works, removers, ground workers, scaffolders, welders etc.

There are many types of business insurance policies available in the market. It is important to know what type of business insurance is suitable for you. It depends on the type of business you are running.

Business property insurance
This is the most essential type of business insurance. A business property insurance provides compensation for the damages due to fire, hail, peril, loss, vandalism and theft. It also covers the losses which result because of natural calamities like wind, floods, earthquakes etc. Your stock, inventory, exterior buildings and company vehicles are generally covered under the property insurance. There are various types of business property insurance. Some of them are:

Equipment damage insurance
Equipment damage insurance is also known as broiler and machinery insurance. It covers furniture, product inventories, money, computers and many other materials which are not covered in property damage insurance. Property insurance just protects you from external damages but not internal such as damages due to electric short circuit.

• Crime insurance
Crime insurance covers the insured during losses like theft, forgery, computer fraud, counterfeiting, general crime, dishonesty etc. This insurance generally helps for filing a claim against the employee theft or other offenses, which would lead to financial ruin.

Business liability insurance
If you have a business liability insurance, you will be protected from the events of lawsuit for personal injury or property damages filed by third parties. This insurance covers damages which result from a lawsuit along with the legal costs. There are different forms of business liability insurance. They are:

• Errors and omission insurance
The errors and omission insurance protects an individual, professional or a company from paying the full cost of defense for lawsuits related to an accidental error or omission while providing covered professional services. Insurance agents, brokers, real estate agents, architects, third party administrators etc. generally go for the errors and omission insurance.

• Employment practices liability insurance
This insurance provides protection for an employer against the claims of the former employees, employees or potential employees. The employment practices liability insurance also covers discrimination of age, race, sex, disability etc., sexual harassment, wrongful termination of employment and also other employment related allegations. Both your firm including directors and officers are covered by this insurance.

• Umbrella liability or supplemental liability insurance
'Umbrella' is a term referred to as to how the policy shields the assets of the person who is insured to a higher extent than just the primary coverage. This insurance also protects the insured against the slander, invasion of privacy, vandalism and libel. This is useful for the individuals who are the owners of very expensive assets and also who are at a high risk of being sued.

• Motor insurance
This insurance is also known as auto insurance, vehicle insurance or car insurance. This insurance is generally chosen for truck, cars and other vehicles used for commercial purposes. The primary cause of this policy is to provide protection against the losses incurred as a result of traffic accidents and against liability which can be incurred in an accident.

Package policies
This is an insurance policy which combines coverage of two or more types of insurance into one policy. One can opt for business property insurance and business liability insurance into one policy which would be very much beneficial. This policy gives greater flexibility for designing a policy which is more specific for the needs of your company.

Workers' compensation insurance
This insurance provides compensation medical care for employees who suffer from injury, illness or death during the course of employment due to the negligence, carelessness or poor training in any workplace. It covers the insured against the claims of the employee's right to sue the employer.

Other insurances
Many other commercial insurance policies are also available like crime insurance, professional liability insurance, life and disability insurance, business interruption insurance, product liability insurance, home-based business insurance, money insurance, key person insurance etc. These policies generally compensate the loss of income which might occur because of the business inability to conduct normal trade.

It is important for you to make sure that you take a business insurance in order to secure your financial welfare in the course of some unforeseen event. There is no doubt that the business insurance provides coverage for business, but the important thing is that you have to choose the suitable one as per your requirement.