Types of Business Insurance

Doing any kind of business can be risky. That’s why businesses need insurance, and different types have evolved for different business requirements. Here is an overview of several types of insurance that typical large businesses might need.


Businesses are liable for a number of things, including but not limited to worker’s compensation, general liability, malpractice (for medical institutions) and more. There is more than one way to go about providing these types of insurance. For example, a large corporation could choose a traditional group policy provided by an outside agency, or they could use group captives, which allow the business to create and manage its own liability policy.

Property and Catastrophe

Most larger entities prefer to own their locations or rent offices from large corporate towers. Therefore it is often necessary for them to have property insurance. Depending on the head-quarter’s or office’s location, however, normal property insurance that would cover fire, plumbing, or other types of damages, won’t necessarily cover the damage caused by a flood, tornado, or hurricane. A separate type of insurance policy called a catastrophe policy might be needed if the location is at risk for such disasters.


All businesses, from the smallest to the largest, have some type of equipment. For some industries this equipment can be enormously expensive, running into the millions of dollars. Some examples of these include automotive production robots, heavy earth machinery, large commercial ships and medical imaging devices. It is a good idea for every piece of equipment to be insured, so that corporations can recoup their losses on such costly investments. Imagine losing an oil tanker at sea and having to replace it without insurance!

It is always a good idea to be prepared, and businesses need to be prepared more than most. Many things can go wrong in the process of doing business, and it is best to have all of these types of insurance, plus several others not discussed here, in order to be ready for any situation that might occur.