What Does Business Insurance Cover?
Key Takeaways
Business Insurance Protects Your Customers, Employees, Property, and Vehicles
Coverage can include general liability for lawsuits, workers' comp for employee injuries, property damage from fire or theft, business interruption for lost income, and commercial auto for work vehicles.
Standard Policies Don't Cover Floods, Earthquakes, Employee Theft, or Pandemics
These exclusions require separate policies or endorsements. Intentional acts and normal wear and tear are also excluded.
GEICO Offers Seven Policy Types Through Partner Providers
Options include general liability, business owners policy (BOP), professional liability, workers' comp, medical malpractice, cyber liability, and commercial auto. Policies are available in all states except Hawaii.
What is business insurance and how important is it?
Having business insurance can protect you from the burdens that accidents and lawsuits can place on the operations of your business and protect your physical and financial assets. No matter how careful you are in your daily business operations, things happen.
You might be sued for negligence or errors and omissions in your business dealings with a client, and your physical business property may also be at risk.
Someone could slip and fall on your premises leaving you with medical bills to pay. Not to mention, expensive attorney costs associated with business lawsuits can place a huge financial and emotional burden on you, your employees, and family if you are not properly protected.
Cheer up. That's where business insurance comes in to protect you. The following business insurance information will explain the various coverage types that could help keep you, your employees, and your assets safe.
What does business insurance cover?
Business insurance helps protect your company from common risks tied to day-to-day operations. Coverage depends on the policies you choose, but business insurance is typically designed to protect your customers, employees, property, and vehicles from unexpected financial loss.
Clients and Customers
These coverages help protect your business if someone outside your company claims harm or financial loss related to your services or operations.
- Liability claims: Helps cover legal costs and damages if your business is sued for causing bodily injury or property damage to a third party.
- Professional errors: Provides protection if your business is accused of errors, omissions, or negligence in the services you provide, often referred to as professional liability insurance.
- Cybersecurity breaches: Helps protect your business from the financial impact of data breaches or cyberattacks, including recovery costs and expenses relating to compromised customer information.
Employees
These coverages focus on protecting your workforce and helping your business manage employee-related risks.
- Employee injuries: Workers’ compensation coverage helps pay for medical expenses and lost wages if an employee is injured while performing job-related duties.
Property
These coverages help protect the physical assets and operations your business relies on.
- Property damage: Helps protect business property—such as buildings, equipment, furniture, and inventory—from covered events like fire, theft, vandalism, or certain natural disasters.
- Business interruption: Helps cover lost income and ongoing operating expenses if your business is forced to temporarily close due to a covered loss.
Motor Vehicles
These coverages help protect vehicles used for business purposes and the risks that come with operating them.
- Commercial vehicles: Helps cover damage to business-owned vehicles and expenses arising from accidents involving vehicles used for work activities.
Don’t leave your business unprotected. Call the GEICO Insurance Agency today to explore coverage options from trusted providers.
How does business insurance work?
Business insurance works by providing financial protection against risks that could lead to significant losses for your company. You pay regular premiums to an insurance provider, and in return, the provider covers specific risks outlined in your policy, such as property damage, liability claims, or employee injuries.
If a covered event occurs, your small business insurance allows you to file a claim with the insurer, who will assess the situation and compensate you for the financial losses up to the policy’s limits. This helps businesses manage risks and avoid catastrophic financial setbacks.
What is not covered by business insurance?
While business insurance offers broad protection, there are certain things it typically doesn’t cover. It's important to understand these exclusions so you can assess whether additional coverage or a separate policy is necessary for your business. In general, business insurance doesn’t cover:
- Intentional acts: Any damage or harm caused by deliberate or illegal actions by the business owner or employees is not covered
- Wear and tear: General deterioration of equipment, machinery, or property due to normal use or aging isn't covered by business insurance.
- Flood and earthquake damage: Natural disasters like floods and earthquakes are often excluded from standard policies and require separate coverage.
- Employee theft or fraud: Losses due to dishonest acts by employees, such as theft or embezzlement, usually aren’t covered without a separate fidelity bond or crime insurance policy.
- Pandemics and government shutdowns: Many business insurance policies exclude coverage for losses related to pandemics or government-mandated closures.
How much does business insurance cost?
The cost of business insurance depends on factors like the size and type of your business, the industry you're in, the risks you face, the coverage limits you choose, the location of your business, and any previous claims history. Premiums can vary based on how much protection your business needs and the specific risks you want to cover.
Protect your business with coverage options available through the GEICO Insurance Agency.. Speak to an insurance specialist now.
GEICO business insurance coverage options
Business insurance coverages are written through non-affiliated insurance companies and are secured through the GEICO Insurance Agency, LLC. The information you provide will be shared with our business partners so that they can return a quote.
- General Liability Insurance (GL or CGL Insurance)
- Business Owners Policy (BOP)
- Professional Liability Insurance (PL or E&O)
- Workers' Compensation Insurance
- Medical Malpractice Insurance
- Cyber Liability Insurance
Additionally, GEICO offers commercial auto insurance for your business cars, trucks and vans.
While operating and conducting business comes with uncertainty, one thing that is sure is that you can count on us to help. There is no such thing as being "too careful." You have options.
Visit GEICO's business insurance pages above for clarification on which coverage(s) fit your needs. If you are ready, begin a business quote online or call (866) 509-9444 and let our business insurance specialists help you select the right commercial insurance policy for your business.
Get Personalized Business Insurance with GEICO
At GEICO, we make it easy to safeguard your company from the unexpected with personalized business insurance solutions. Whether you’re a small business or a growing enterprise, our policies are designed to provide the peace of mind you need.
Ready to get started? Get a free quote online or give us a call at (866) 509-9444 to speak with an insurance specialist and get a customized business insurance.
Business Insurance That Works Hard
A business owners policy could bundle key coverages in one place.
