Understand your coverage.
Protect your business.
Every business faces a different mix of risks. Explore six common types of commercial insurance, what they can help protect, and the questions worth asking before you choose a policy.
General liability
General liability insurance helps protect your business against covered claims involving injuries to other people, damage to their property, and certain personal and advertising injuries. It is a common starting point for business insurance.
What it can do for your business
- Can help pay legal defense costs and covered settlements or judgments.
- Addresses liability arising from covered business activities, premises, products, or completed work.
- Can help meet insurance requirements in a lease or customer contract when the policy and endorsements match those requirements.
A business example
A customer slips in your shop and alleges that your business is responsible for their injury. General liability may respond to the covered claim and related defense costs.
What to review
It generally does not replace workers’ compensation, commercial auto, or professional liability. It also does not insure your own building or equipment against damage. Contract requirements may call for additional insured endorsements or other changes.
Worth discussing for: Businesses that meet customers, work at client locations, sell products, or lease premises.
Business owner’s policy (BOP)
A business owner’s policy combines general liability and commercial property coverage in one package. Many BOPs also include business income and extra expense coverage for qualifying interruptions following covered property damage.
What it can do for your business
- Combines protection for covered liability claims with coverage for insured business property.
- Can cover items such as business equipment, furnishings, inventory, and an owned building when included.
- May help replace covered lost business income and pay qualifying extra expenses while operations recover.
A business example
A covered fire damages your shop’s inventory and forces a temporary closure. The property and business income portions of an eligible BOP may help with covered losses.
What to review
Eligibility depends on the business and carrier. Income protection has specific triggers, limits, waiting periods, and restoration periods. Flood, professional liability, commercial auto, workers’ compensation, and cyber risks generally need separate coverage or specific additions.
Worth discussing for: Eligible offices, shops, and other small businesses that need both liability and property protection.
Workers’ compensation
Workers’ compensation provides benefits to eligible employees who suffer a covered work-related injury or occupational illness. Benefits and employer obligations are governed by the applicable state system.
What it can do for your business
- Can pay covered medical treatment and a portion of lost wages.
- May provide rehabilitation and other statutory benefits.
- Helps employers plan for workplace injury costs and address applicable coverage requirements.
A business example
An employee injures their back while moving supplies at work. Workers’ compensation may provide medical and wage-replacement benefits if the claim qualifies.
What to review
Requirements vary by state, workforce, and business activities. Do not assume that part-time status or calling someone an independent contractor settles whether coverage is required. Employers’ liability is a related coverage to review separately, particularly where state-fund arrangements apply.
Worth discussing for: Businesses with employees, including businesses adding their first team members.
Commercial auto & fleet
Commercial auto insurance addresses risks involving vehicles used in business operations. A policy can be structured for a single work vehicle or a fleet, with coverage based on the vehicles, drivers, and uses you disclose.
What it can do for your business
- Liability coverage can help with covered injuries or property damage caused to others in an auto accident.
- Collision and comprehensive coverage, when purchased, can help repair or replace insured vehicles after covered losses.
- Other options may address uninsured motorists, medical expenses, and hired or non-owned auto liability.
A business example
An employee driving a covered company van causes an accident that damages another vehicle. Commercial auto liability may respond; damage to your van would depend on its physical damage coverage.
What to review
Do not assume a personal auto policy or general liability policy covers business driving. Hired and non-owned auto liability needs special attention if employees use personal or rented vehicles for work. Tools, cargo, and equipment may need separate protection.
Worth discussing for: Businesses using cars, trucks, vans, or other vehicles for deliveries, job sites, service visits, or other business activities.
Professional liability / E&O
Professional liability, often called errors and omissions (E&O), helps address covered allegations that mistakes, omissions, or negligence in professional services caused a client financial harm.
What it can do for your business
- Can help pay the cost of defending a covered professional-services claim.
- May cover qualifying settlements or judgments up to the policy’s limits.
- Addresses service-related financial loss exposures that general liability may not cover.
A business example
A consultant is accused of making an error in a recommendation that caused a client financial loss. Professional liability may help defend the claim and address covered damages.
What to review
Covered professional activities must match your work. Many policies are claims-made, so retroactive dates, reporting deadlines, and continuity of coverage matter. Intentional wrongdoing and other exclusions can limit coverage. Do not cancel or switch policies without reviewing how existing work is treated.
Worth discussing for: Consultants, advisers, designers, technology providers, and other businesses paid for professional services or expertise.
Cyber insurance
Cyber insurance can help a business respond to covered cyber incidents, such as certain data breaches or attacks on its systems. Policies may combine protection for your own response costs with liability protection for claims brought by others.
What it can do for your business
- May help pay for forensic investigation, legal guidance, notification, and other covered incident-response services.
- Can include covered data restoration, business interruption, and cyber extortion costs.
- May cover defense costs and qualifying damages arising from certain privacy or network-security claims.
A business example
An attacker gains access to customer information held by your business. Depending on the policy, cyber coverage may help investigate the incident, notify affected people, and respond to covered claims.
What to review
Coverage depends on the incident, policy terms, security requirements, and reporting obligations. Social engineering, funds-transfer fraud, and vendor outages may require specific coverage and can have separate limits. Cyber insurance supports—not replaces—good security practices.
Worth discussing for: Businesses that store customer or employee information, use cloud systems, process online transactions, or depend on digital operations.
Not sure where to start?
Tell us what your business does, where you operate, and what you need to protect. We’ll help you explore relevant coverage options and identify questions to address.
Email: quote@stratos.insure
Coverage descriptions are general summaries, and examples are illustrative. They do not guarantee coverage for any particular claim. Actual protection depends on the policy, endorsements, limits, deductibles, exclusions, and applicable law. Availability varies by business, state, and carrier. Requesting information or a quote does not bind, change, or cancel coverage.