Business insurance services provide insurance policies that protect businesses against financial losses caused by damage to buildings and capital equipment. They also sell health, liability, accidental death, and workers compensation insurance; provide insurance policies against theft and lawsuits; and meet other business-related insurance needs. Business insurance services include both insurance agents and insurance companies. An insurance agent is a representative of an insurance company who sells insurance in a geographic area. Insurance agents must be licensed in the state or province where they operate, and sometimes represent multiple insurance carriers. An insurance company or insurance carrier is a business that is licensed to sell insurance to the public. Insurance companies must be registered in the state or province where they or their agents sell insurance policies, documents which define the contract between the insurer and the insured.

Selecting business insurance services requires an understanding of the many different types of business insurance that are available. Categories include commercial property, business owner’s policy (BOP), general liability, professional liability or errors and omissions, directors and officers, business automobile, marine, umbrella (supplemental liability), travel, business interruption, and key-person life. BOP insurance provides broad coverage to smaller businesses, generally with 100 or fewer employees. General liability insurance is another form of broad insurance coverage. Property insurance indemnifies a business for the loss of physical property, or the loss of a property’s income-producing ability. Professional liability insurance protects the insured for losses caused by errors of omission. Directors and officers policies are designed to protect businesses against claims arising from the actions of executives. Business insurance services that provide business interruption policies protect business owners against losses from temporary shutdowns due to fire, floods, or severe weather.

Business insurance services sell many types of insurance that allow employers to cover their employees. Policies include health insurance, accidental death insurance or life insurance, and workers compensation insurance. Health insurance provides policyholders against the cost of hospital or medical care because of illness or injury. In some states, businesses with more than 12 employees must offer their full-time workers health insurance. Accidental death insurance (life insurance) provides employees with coverage in the event of death due to accidental injury, but not illness. In the event of an employee’s death, business insurance services arrange for payment to beneficiaries. Workers compensation insurance (workers comp) pays for the medical care and rehabilitation of employees who are injured while on the job. It also pays their lost wages while they’re unable to work.