Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability, and employee-related risks. Companies evaluate their insurance needs based on potential risks, which can vary depending on the type of environment in which the company operates.
When a business purchases insurance coverage from an insurance carrier, the insurance company is then obligated to pay the business for the cost of the covered loss up to the limits of the policy.