What Does Business Insurance Cover?

How important is business insurance?

Having business insurance can protect you from the burdens that accidents and lawsuits can place on the operations of your business and protect your physical and financial assets. No matter how careful you are in your daily business operations, things happen.

You might be sued for negligence or errors and omissions in your business dealings with a client, and your physical business property may also be at risk.

Someone could slip and fall on your premises leaving you with medical bills to pay. Not to mention, expensive attorney costs associated with business lawsuits can place a huge financial and emotional burden on you, your employees, and family if you are not properly protected.

Cheer up. That's where business insurance comes in to protect you. The following business insurance information will explain the various coverage types that could help keep you, your employees, and your assets safe.

What does business insurance cover?

Business insurance protects your company from various risks and potential financial losses caused by normal business operations. Though dependent on your specific policy, business insurance typically covers:

  • Property damage: Protects your business property, including buildings, equipment, and inventory, from damage caused by fire, theft, vandalism, and natural disasters.
  • Liability claims: Covers legal costs and damages if your business is sued for causing injury or property damage to a third party.
  • Employee injuries: Provides workers' compensation, which pays for medical expenses and lost wages if an employee gets injured on the job.
  • Business interruption: Helps cover lost income and operating expenses if your business is forced to shut down due to a covered event, like a fire or natural disaster.
  • Cybersecurity breaches: Protects your business from the financial fallout of data breaches or cyberattacks, including recovery costs and liability for compromised data.
  • Professional errors: Offers protection if your business is sued for errors, omissions, or negligence in your services, often referred to as professional liability insurance.
  • Commercial vehicles: Covers damage or liability related to vehicles used for business purposes.

How does business insurance work?

Business insurance works by providing financial protection against risks that could lead to significant losses for your company. You pay regular premiums to an insurance provider, and in return, the provider covers specific risks outlined in your policy, such as property damage, liability claims, or employee injuries.

If a covered event occurs, you can file a claim with the insurer, who will assess the situation and compensate you for the financial losses up to the policy’s limits. This helps businesses manage risks and avoid catastrophic financial setbacks.

What is not covered by business insurance?

While business insurance offers broad protection, there are certain things it typically doesn’t cover. It's important to understand these exclusions so you can assess whether additional coverage or a separate policy is necessary for your business. In general, business insurance doesn’t cover:

  • Intentional acts: Any damage or harm caused by deliberate or illegal actions by the business owner or employees is not covered
  • Wear and tear: General deterioration of equipment, machinery, or property due to normal use or aging isn't covered by business insurance.
  • Flood and earthquake damage: Natural disasters like floods and earthquakes are often excluded from standard policies and require separate coverage.
  • Employee theft or fraud: Losses due to dishonest acts by employees, such as theft or embezzlement, usually aren’t covered without a separate fidelity bond or crime insurance policy.
  • Pandemics and government shutdowns: Many business insurance policies exclude coverage for losses related to pandemics or government-mandated closures.

GEICO Business Insurance Coverage Options

Business insurance coverages are written through non-affiliated insurance companies and are secured through the GEICO Insurance Agency, LLC. The information you provide will be shared with our business partners so that they can return a quote.

  1. General Liability Insurance (GL or CGL Insurance)
  2. Business Owners Policy (BOP)
  3. Professional Liability Insurance (PL or E&O)
  4. Workers' Compensation Insurance
  5. Medical Malpractice Insurance
  6. Cyber Liability Insurance

Additionally, GEICO offers commercial auto insurance for your business cars, trucks and vans.

While operating and conducting business comes with uncertainty, one thing that is sure is that you can count on us to help. There is no such thing as being "too careful." You have options.

Visit GEICO's business insurance pages above for clarification on which coverage(s) fit your needs. If you are ready, begin a business quote online or call 866-509-9444 and let our business insurance specialists help you select the right commercial insurance policy for your business.

Get Customized Business Insurance with GEICO

At GEICO, we make it easy to safeguard your company from the unexpected with personalized business insurance solutions. Whether you’re a small business or a growing enterprise, our policies are designed to provide the peace of mind you need.

Ready to get started? Get a free quote online or give us a call at 866-509-9444 to speak with an insurance specialist and get a customized business insurance.

FAQs about Business Insurance

For business insurance online quotes:

If you choose to get a rate quote online, you will be taken to the business partner's website. The website is not owned by GEICO Insurance Agency LLC. Any information that you provide directly to the business partner on its website is subject to the privacy policy posted on that website, which you should read before proceeding. GEICO Insurance Agency LLC assumes no responsibility for their privacy practices or your use of either website.

Please note:

Business Insurance coverages are written through non-affiliated insurance companies and are secured through the GEICO Insurance Agency, LLC. We can help you secure business insurance in all states except Hawaii.

Workers' Compensation insurance coverages are written through affiliated and non-affiliated insurance companies and are secured through the GEICO Insurance Agency, LLC. We can help you secure Workers' Compensation insurance in all states except Hawaii, North Dakota, New Mexico, Ohio, Washington and Wyoming.

Medical Malpractice insurance coverages are written through affiliated insurance companies and are secured through the GEICO Insurance Agency, LLC.

The information you provide will be shared with our business partners so that they can return a quote.