Understanding Business Insurance in Indiana: Coverage Every Business Owner Should Consider

The right insurance coverage can protect your business from financial losses that may otherwise threaten its survival. Here is an overview of the types of business insurance and what they cover.

Running a business involves risk. One of the most important steps a business owner can take to manage that risk is securing adequate insurance coverage. While the specific types and amounts of coverage a business needs depend on its size, industry, and operation, there are several categories of business insurance that most Indiana business owners should consider.

General Liability Insurance

General liability insurance protects the business against claims for bodily injury, property damage, and personal injury, that arise from the business’s operations. If a customer slips and falls at your place of business or if your product damages someone’s property, general liability insurance covers the cost of defending the claim and any resulting settlement or judgment. Most commercial leases and many contracts require the business to carry a minimum level of general liability coverage.

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects businesses that provide professional services against claims of negligence, errors, or failure to perform. This type of coverage is particularly important for professionals such as consultants, accountants, architects, and technology service providers, whose clients may suffer financial losses if the professional’s work is defective or incomplete.

Commercial Property Insurance

Commercial property insurance covers damage to the physical assets of the business, including the building if the business owns it, equipment, inventory, furniture, and fixtures. Covered events typically include fire, theft, vandalism, and certain weather-related damage. Business owners who lease their space should review their lease to understand whether the landlord’s insurance covers the building structure and whether the tenant is responsible for insuring its own contents and improvements.

Business Interruption Insurance

Business interruption insurance covers lost income and ongoing expenses when a covered event, such as a fire or natural disaster, forces the business to temporarily close or significantly reduce its operations. This type of coverage can help a business pay rent, payroll, loan payments, and other fixed expenses while it is unable to generate revenue. Without business interruption coverage, even a short closure can create cash flow problems that threaten the business’s survival. Indiana business owners should also consider whether their operations warrant additional coverages such as cyber liability insurance, which covers losses from data breaches and cyberattacks, or commercial auto insurance for businesses that use vehicles in their operations.

The attorneys at McNeelyLaw LLP can help you evaluate your insurance needs and review your existing policies. Contact us today by calling (317)825-5110 to speak to one of our experience attorneys.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.