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 other than an employee accuses your business of causing an injury or property damage.

For instance, a customer at a small cafe in Wilmington accuses a barista of spilling a scalding cup of coffee on their arm and seeks medical care. The business owner’s general liability coverage could help cover the customer’s medical expenses, as well as the cost to replace their stained blouse.

Cleaning and construction companies may also want to include tools and equipment coverage with their general liability policy. This optional add-on can help replace or repair essential work gear that’s stolen, lost or damaged.

Delaware law requires almost all businesses with employees to carry workers’ compensation coverage. When workers are hurt on the job, this form of insurance can help pay for medical care and physical rehabilitation and cover a portion of their lost wages during recovery.

Workers’ compensation coverage would apply in the following situation:

An employee of a carpentry firm in Bethany Beach is injured in a fall while repairing a deck at a vacation home. The business owner’s workers’ comp insurance could help cover the employee’s medical bills and pay a portion of lost wages if the worker needed time off to recuperate.

Did you know that personal auto policies won’t cover accidents that happen if you’re driving for business? That makes commercial auto coverage important if you or your employees drive for work purposes.

For example, the owner of a house cleaning company in Cambridge totals a company van, injuring himself and several other drivers. Commercial auto insurance could help cover the injured parties’ medical expenses and pay for vehicle damages.

If your business asks employees to drive their own vehicles for business or rent cars, there’s add-on coverage for such situations. It’s an optional and called hired and non-owned auto insurance.

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

For instance, a sprinkler malfunction at a Dover 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.

It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Many insurers don’t cover flooding or hurricane damage.

No matter how carefully you run your business, there’s always a chance that a client could blame you for a mistake that resulted in financial losses. If this happened, professional liability coverage, also called E&O or errors and omissions insurance, could benefit your business.

This type of business insurance coverage can help pay damages and legal defense fees if you’re accused of professional negligence, which could include missed deadlines or incomplete jobs.

For example, a client alleges that an event planner failed to secure a conference room and AV equipment for an event at the Rehoboth Beach Convention Center and demands reparations. The event planner’s professional liability insurance could help pay for damages to settle the claim, along with court costs and attorney bills if the client files a lawsuit.