One of the most frequently purchased types of business insurance is general liability coverage, sometimes called commercial general liability or business liability insurance. It can help pay for damages if someone accuses your business of causing an injury or property damage.

For instance, an employee at a painting company in Phoenix accidentally knocks over a can of paint and ruins a client’s carpeting. General liability insurance could help the painters cover the expense of replacing the carpeting.

If you own a construction or cleaning company, you may want an optional coverage upgrade called tools and equipment insurance. It can help pay for business gear that’s lost, stolen or damaged outside of normal wear and tear.

Arizona requires most businesses with employees to carry workers’ compensation insurance. This form of coverage is designed to help cover costs when employees are hurt on the job. It can help pay for medical bills and lost wages while the employee recovers.

Here’s an example of how workers’ comp insurance could help a small business in Arizona:

An employee of a Tucson-based auto body repair shop gets a serious cut on his hand and needs medical attention, along with several weeks of physical therapy. Workers’ comp insurance could help cover the worker’s medical and rehab bills, as well as help provide lost wages while they’re unable to work.

If you or your employees drive for business, you’ll need commercial auto coverage. That’s because personal car insurance won’t pay for accidents that happen while driving for business.

Commercial auto insurance could help in the following situation:

An architect in Scottsdale has a collision in a company-owned car during a dust storm. Commercial auto insurance could help cover damages to the vehicles involved in the accident and pay for medical expenses if anyone is injured.

Hired and non-owned auto insurance is a common commercial auto coverage add-on. This optional upgrade is designed to provide coverage if employees drive their own vehicles or rent cars for business purposes.

Arizona commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water, fire or wind damage.

For example, a sprinkler malfunction at a Mesa construction company damages the office, ruining a computer and printer. Commercial property coverage could help pay to clean up the mess and replace the damaged business equipment.

If a client claims that your business made a work mistake or failed to deliver what you promised, you could face an expensive lawsuit, even if your company is not at fault.

In such cases, professional liability insurance, also known as E&O or errors and omissions coverage, could help a small business defend itself.

For example, a client says that a catering company in Flagstaff failed to fulfill a contract. If the client pursues legal action, E&O insurance could help the caterers pay for attorney fees, court costs and any damages for which they’re found liable.