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Business Insurance

We're all familiar with home, car, and health insurance, but there are also several types of insurance specifically for businesses. There's not really one catch-all business insurance that can cover everything, however you can often package together several different types of insurance, sometimes known as a Business Owner's Policy, which can help save money over purchasing each one individually.

The most common types of insurance for service businesses are:

General liability insurance

This kind of insurance can protect you, as well as your employees, from damages (legally having to pay someone back) in cases where a customer's property is damaged or they suffer bodily harm. For example, if you run a lawn care business and break a customer's window after hitting a rock with your mower, general liability insurance would take care of the cost of replacing the glass.

General liability insurance can be reasonably affordable, and is usually worth the cost, however the price does depending on the work you do. Businesses that work primarily in and around a customer's property tend to pay higher premiums than those who don't.

Commercial auto insurance

For businesses that spend a lot of time on the road driving to job sites, commercial auto insurance should be a serious consideration. It will cover cars and trucks you own that are used to cary you, your employees, and any work equipment. Personal auto insurance won't cover vehicles that are used while on the job, so if you're driving to a customer's home to pressure wash their deck and get into an accident with someone, you're going to be paying for any damage out of pocket if you don't have commercial auto insurance.

Non-owned auto insurance

This type of insurance can be helpful if you have employees that use their own vehicles to do work related things. That means delivering things to customers, hauling work equipment to the job site, etc. It will protect you as well as your business from being sued if your employees do have an accident while driving their cars to actually do work for your business. One thing it doesn't cover, though, is any accidents that happen while the employee is commuting to/from work. It also won't pay for any damage done to the employees vehicle, that's left up to their own personal auto insurance.

Worker's compensation

This is also a type of business insurance, and you may be legally required to purchase it, depending on the number of employees you have. Read more about what exactly it is and the requirements for it here