Business insurance sometimes feels like a minefield. Not only are there lots of different types available, but getting it wrong can have disastrous consequences. Failing to take out the right insurance might be costly or even land you in legal trouble. Here’s a rundown of the most popular types that every business owner should be aware of.

#1 Professional indemnity insurance Indemnity insurance has a wide remit. In basic terms, it covers you when something goes wrong. A customer might claim that one of your products doesn’t work as expected or file a negligence claim. No business is perfect, and mistakes happen despite the best intentions, so this insurance is vital. It covers you against those mistakes and is especially valuable if your company gives out advice or recommendations to other

businesses. This protection covers both legal fees and compensation.

#2 Public liability insurance

Perhaps the most well-known type of insurance, public liability is required by nearly every kind of business. If someone feels that either they or their property have been damaged as a result of your business practice, they can make a claim. Those claims are often costly, which is where public liability comes in. It covers you against the cost of the claim as well as legal fees. Depending on where you live, public liability insurance isn’t always a legal necessity, but most businesses consider it essential.

#3 Data breach insurance Data breaches weren’t always at the forefront of the public consciousness, but that’s changed in recent times. Cyberattacks

are more common than they’ve ever been, and data theft is rarely out of the news. Data breach insurance covers you against the array of damages caused by an attack. Loss of revenue, damage to software/hardware, the cost of the ensuing investigation, and even any fines are all covered. Losses through cybercrime can be expensive and sometimes represent an existential threat to online-based businesses, so this insurance is essential.

#4 Product liability insurance

An absolute must if you sell products; this kind of insurance protects you in the event of something going wrong with an item that you sell. Although most businesses put their products through stringent safety tests, something could still go awry in the hands of a customer. If that accident causes damage to property or person, then you’re liable for a big payout. Product liability insurance gives you an additional layer of protection against these types of claims, letting you sell your items with peace of mind.

#5 Contents and equipment insurance

This is one of the more often overlooked kinds of insurance, but all businesses should consider it. Regardless of your business’s size, you likely maintain an office space of some kind. That will contain equipment like computers, printers and scanners, not to mention office furniture including desks and chairs. If something happens to the office or any of the equipment in it, this insurance will get replacements to you fast. It will also save you paying for new out-of-the-business kitty. In essence, this kind of insurance protects the equipment you use to run your business day-to-day.

#6 Tools insurance Following on from the previous point, tools insurance won’t apply to everyone, but it does (again) guarantee continued operation in the event of a problem. Quite simply, this insurance

covers the loss or damage of tools essential for the continued running of your business. If, for example, you’re a builder who finds that their tools have been stolen overnight, this cover becomes invaluable.

#7 Business interruption insurance

One of the simplest types of insurance on the list, business interruption cover does just that: it protects you if your business is interrupted and unable to function. That might be due to a fire or flood at the office or any range of circumstances. Even a slight interruption can be extremely costly, so having this cover in place is always a good idea.

#8 Personal accident insurance

Last but not least, this is frequently confused with public liability, but the two are very different. Personal accident insurance specifically covers you and your staff if they sustain an injury that prevents them from coming to work. The cover is designed to minimize the financial blow caused by a member of senior staff being unable to come into the office. It can help you to pay for temporary staff or simply tide you over until the individual is fit to return to work.