Business planning is what will make or break your business moving forward. While you’re crafting your business plan, one focus that you should have is what type of insurance you need to purchase for your business to protect you and your assets. But with that in mind, which insurance policies are necessary? Which types of insurance are going to be instrumental in your new business? Let’s take a closer look at the three types of commercial insurance you need when starting a new business.

1. Commercial Auto Insurance

If you plan on operating a business that will rely on a company fleet in any capacity, you need commercial auto insurance. Much like personal car insurance, commercial auto insurance will help you protect both your employees and your vehicles. When you’re shopping for commercial auto insurance, make sure that your policy is sufficient enough to cover your fleet. Also, consider any add-ons that could help you make the most of your car insurance. Business vehicles are a major investment, so you don’t want to pay too little and receive coverage that won’t help you replace your vehicles should they get wrecked. Just like when driving your personal vehicle, wrecks are bound to happen so it’s smart to be prepared when driving a company car.

2. Professional Liability Insurance

One of the most important forms of business insurance that you should be shopping for is professional liability insurance. If you plan on operating a business that requires you to rent out a physical office space, there’s always the potential for a customer to get injured in your store. If you don’t have professional liability insurance, this could leave you open to a lawsuit that could put you out of business rapidly.

Of course, this extends to your products as well. Having insurance that protects you in the event of your product causing injuries to your customers will prove essential. While the risk of injuries being sustained on your property or due to your products might be low, it’s still worth having coverage so that you’re protected if it does happen.

3. Workers’ Compensation Insurance

Having a team of skilled employees is important for any business planning to scale. But while you may not anticipate any issues, the reality is that these employees could get sick or injured on the job. This is where workers’ compensation insurance comes in. If your employees are injured at work or become sick as a result of the work they do, workers’ compensation insurance will help you cover the costs needed to support them financially until they’re able to come back. If you don’t have insurance coverage to pay for these injuries or illnesses, it could open you up to expensive lawsuits.

Proper business coverage is essential to any business. However, knowing what type of coverage you need isn’t something that comes naturally when you’re launching your first business. If you’ve come to the insurance planning stage of your business plan, start with the three types of business insurance listed above to keep your assets and your business protected no matter what may get thrown your way.