How to Use Insurance to Protect Business Assets

If you own a business, then one of your top priorities is to protect your business assets. Owning a company comes with risks — accidents, natural disasters, theft, lawsuits — all which can cause serious setbacks. Because these risks sometimes result in real loss and damage, every company should carry business insurance for when the unexpected happens.

But what types of insurance are essential to protecting your company? And how do you match the right policy to the right risk? In this article, we break down the common and lesser-known insurance policies that help safeguard your business.

Part of a larger risk mitigation plan

There are a variety of types of business insurance and getting the right coverage is key. To make sure your coverage fits your risks, an insurance policy legal review can help identify gaps or overlaps.

Here are the top ten essential policies for every business, each designed to cover a specific kind of risk.

1. Workers’ Compensation Insurance

Workers’ Compensation covers medical bills and lost wages from injuries on the job and protects businesses from most workplace injury lawsuits. Coverage is mandatory in most states if you have W-2 employees, but requirements vary by state.

2. Commercial General Liability Insurance (CGL)

CGL protects your business from financial losses when a third party is injured or their property is damaged because of your operations. It covers claims like slip-and-fall accidents, property damage, and legal issues such as libel.

3. First-Party Property Insurance

First-party property insurance, commonly known as property insurance, protects physical business assets like buildings, inventory, or equipment from damage or destruction. In the event of fire, theft, or vandalism, businesses can recoup repair costs and stay operational after a loss.

4. Directors and Officers (D&O) Insurance

D&O insurance is a type of liability insurance that protects company leaders (directors and officers) from lawsuits and financial losses stemming from their actions in managing a company. This coverage acts as a safety net for legal fees, settlements, and other claims costs and is especially important for corporations and nonprofits with a board of directors

5. Employment Practices Liability Insurance (EPLI)

EPLI covers legal costs when employees allege discrimination, harassment, wrongful termination, or other workplace violations. As employment laws become more complex, EPLI policies help protect both a company’s finances and its reputation.

6. Cyber or Technology Errors & Omissions Insurance

Cyber and Tech E&O insurance helps businesses recover after a data breach, system failure, or cyberattack. It typically covers notification costs, legal liability, forensic investigation, and regulatory penalties. Coverage terms vary widely, so policies should match your digital risk exposure.

7. Errors & Omissions / Professional Liability Insurance (E&O)

E&O insurance protects businesses and individuals if a client claims you made a mistake, gave bad advice, or failed to deliver work as promised. It also covers legal defense, settlements, and damages related to professional negligence. Professionals in various fields, including doctors, lawyers, accountants, consultants, and real estate agents, often need E&O insurance.

8. Crime Insurance

Crime insurance covers financial losses from theft, fraud, forgery, or embezzlement, whether committed by employees or outside parties. It also protects against cybercrime scams like phishing and ransomware attacks, which standard policies usually don’t cover.

9. Keyman Insurance

Keyman insurance provides a financial cushion if a critical employee — such as a founder, executive, or technical expert — dies or becomes incapacitated. The payout helps cover lost revenue, recruitment costs, or temporary disruptions. Particularly for small or closely held businesses, this coverage helps keep operations stable.

10. Business Owners Policy (BOP)

A BOP bundles several policies — typically general liability, property insurance, and business interruption — into one package. It’s designed for small to mid-sized businesses that want broad protection without managing multiple separate policies. BOPs are customizable, affordable, and simplify the insurance process.

Protecting your business for generations to come?

Wondering will your business last past the next generation? Business asset protection services can help you plan for the future.

San Diego attorney Rod Hatley empowers business owners to build long-term legacy plans. He provides a holistic approach to business continuity and family wealth planning — including trusts, buy-sell agreements, and insurance policies that support ownership transitions.

Don’t put off planning to preserve your assets. Contact Rod Hatley of Hatley Law Group, A P.C. today!