What types of insurance should my business have to protect against potential liability issues?

The first type of insurance that your business should have is general liability insurance. This type of insurance is designed to protect your business from claims of bodily injury or property damage caused by your business operations, products, or services. General liability insurance may also cover the cost of legal defense if your business is sued for any of these claims.

In addition to general liability insurance, your business may also need professional liability insurance (also known as errors and omissions insurance). This type of insurance is designed to protect your business from claims of negligence, errors, or omissions in the course of providing professional services or advice. Professional liability insurance is typically required for businesses that provide professional services such as legal, accounting, or medical services.

If your business has employees, you will also need workers' compensation insurance. Workers' compensation insurance provides compensation to employees who are injured or become ill as a result of their work. It also covers medical expenses and lost wages.

Depending on the nature of your business, you may also need more specialized insurance such as product liability insurance (if your business manufactures or sells products), cyber liability insurance (if your business collects and stores sensitive customer information), or employment practices liability insurance (if your business is vulnerable to claims of discrimination, wrongful termination, or harassment).

It is important to note that insurance policies can have limitations and exceptions, so it is important to carefully review policy terms and exclusions to ensure that your business is adequately protected. Additionally, insurance should not be the only means of protecting against potential liability issues. Businesses should also have strong risk management practices such as maintaining safe working conditions, properly training employees, and having a clear contract and policy/agreement in place when engaging in business relationships with third parties.

In conclusion, to protect against potential liability issues, businesses should prioritize having general liability insurance, professional liability insurance, workers' compensation insurance (if applicable) as well as other specialized insurance policies as needed. Careful review of policy terms and their exclusions and scaling of the business risk management practices in place can help mitigate some of that risk.