Over a prolonged period of time, every business will likely have a moment where they need to rely on their insurance policy for some non-perceived calamity. These disasters can take a variety of shapes, and therefore, a variety of types of insurance coverages are available to your business to protect you from these disasters. It is possible that the continued existence of your business will rely on the type and quantity of insurance that you decide to purchase. This article will discuss a few common types of insurance.

Officer and director insurance protects the business from decisions made by the board of directors and officers which may be thought of as fraud or gross negligence on their part. Officer and director insurance does not protect against bad decisions, but does against more serious accusations like fraud. The insurance company will reimburse the company for real legal and reputation losses as a result of this insurance.

Keyman insurance is another common insurance type available to businesses. In case of sudden termination or death of a key figure, the company will receive a payment for this individual, similar to the way a life insurance policy works for an individual. Keyman insurance may be a useful insurance type if your business relies heavily on one or two individuals for its continued success.

General business insurance is another type which covers a variety of areas, including general indemnity bonds, loss of inventory or theft, protection against fires, and a host of other insurance protection that varies depending on the terms of your insurance contract.

The last type of insurance we will discuss is workers’ compensation insurance. Workers’ compensation insurance will provide an annuity stream to disable employees who get hurt on the job. The workers’ compensation insurance rates will fluctuate sharply depending on the history your company has for these employees getting hurt which is called your experience rate. The higher the rate, the higher the insurance premiums are.