If something were to happen to you or your business, your vehicle or an employee, as a business owner are you covered? No matter what type business you're in, it has its own unique requirements for certain types of business insurance.

Have you ever actually sat down and tried to determine just what kind(s) of business insurance you need to adequately protect the assets of your business? Do you use a vehicle in your business, even if it's your own personal truck? Have you purchased some expensive tools and equipment? Did you buy some very expensive software to maintain your customer database? Are you required to stock materials and supplies? Do you offer professional counseling and advice to the general public?

Types of Coverage

Although insurance needs vary widely from one business to the next, here's a quick checklist of policies you'll want to consider.

Business owner coverage. Otherwise known as "catch-all" coverage, business owner insurance provides damage protection from fire and other mishaps. Owner coverage also offers a degree of liability protection.

Property insurance. This can augment the property coverage offered by business owner insurance. Property insurance covers damage to the building that houses your business, as well to as items inside, such as furniture and inventory.

Liability insurance. In our litigation prone society, this may be as important a form of coverage as you can get. This covers damage to property or injuries suffered by someone else for which you are held responsible. This can take in a range of disasters, from the postal worker who sues you for a dog bite incurred during a delivery to your home business, to the clumsy customer who scorches himself after you make your complimentary coffee just too darn hot.

Product liability insurance. You might want this form of coverage if you make a product that could conceivably harm someone else. For instance, catering businesses worried about some dicey-looking truffles or Brie would do well to tack on this coverage.

Errors and omissions insurance. This coverage is particularly important to service-based businesses, offering protection should you make a mistake or neglect to do something that causes a customer or client some harm. A good example is doctor's medical malpractice insurance, which practicing physicians are required to carry.

Business income insurance. This is disability coverage for your business. This ensures you get paid if you lose income as a result of damage that temporarily shuts down or limits your business.

Automobile insurance. This last item should come as no great surprise. If your business uses cars or trucks in some manner, you have to have this type of insurance for collision and liability coverage.

Reducing liability

No business can afford to be unprepared for a lawsuit. Liability insurance protects your business assets when the business is sued for something the business did (or failed to do) that contributed to injury or property damage to someone else. Liability coverage extends not only to paying damages but also to the attorneys’ fees and other costs involved in defending against the lawsuit—whether valid or not.

The standard business owners policy provides liability coverage, as does a separate policy known as a commercial general liability (CGL) insurance policy. Generally, commercial liability insurance, whether purchased in a separate policy or as part of a standard business owners policy, will cover bodily injury, property damage, personal injury or advertising injury. The medical expenses of a person or persons (other than employees) injured at the business or as a direct result of the operations of the business are also covered.

Usually excluded from both types of liability insurance policies are suits by customers against a business for nonperformance of a contract and by employees charging wrongful termination or racial or gender discrimination or harassment.

Your attorney and Keith Eck Financial can help you develop strategies to help protect your business and assets.