General liability coverage, which insurance companies call a business liability policy, is often the first type of insurance purchased by small businesses.

If a non-employee claims that your business caused bodily injury or property damage, general liability insurance can help pay for medical costs and to repair or replace items damaged. It can also help cover attorney fees, court costs and settlements in the event of a lawsuit.

A small business owner might need to file a general liability claim in the following scenario:

Someone accuses a small grocery store in Minneapolis of negligence after falling on a wet floor and spraining a shoulder. General liability insurance could help the store pay the customer’s medical bills and legal costs if they sued.

Construction and cleaning companies may want an optional general liability add-on called tools and equipment insurance. This can help pay to replace or repair business gear that’s lost, damaged or stolen outside of wear and tear.

Minnesota state law requires most businesses with employees to carry Minnesota workers’ comp insurance. This kind of coverage is designed to help pay for medical care and lost wages for employees who get hurt on the job.

For instance, a kitchen employee of an Eagan-based restaurant suffers a serious burn, seeks medical attention and needs a month out of work to get better. Workers’ comp coverage could help the business owner pay for the employee’s medical bills and cover a portion of their lost wages.

Businesses insurance in Minnesota frequently includes commercial auto coverage, which provides protection for accidents that happen while driving for business. It’s important because personal auto policies won’t cover damages if you’re behind the wheel for work.

For example, a shuttle driver at a small St. Paul hotel accidentally hits a barrier while driving to the airport, injuring several passengers. Commercial auto insurance could help the hotel pay for the guests’ medical bills and to repair their vehicle.

Businesses that ask employees to rent vehicles or drive their own automobiles for work will want an optional add-on called hired and non-owned auto insurance. This type of coverage can help cover accidents in vehicles not titled to your business.

Minnesota 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 Minneapolis real estate agency damages the office, ruining a computer, printer and furniture. Commercial property coverage could help pay to clean up the mess and replace the damaged business equipment.

If someone says that your company made a mistake, failed to deliver on a contract or missed an important deadline that caused financial loss, you could face a lawsuit.

That’s why many small business insurance packages in Minnesota include professional liability coverage, which is also called E&O or errors and omissions insurance. This kind of coverage can help your company pay for the cost of the mistake and help cover attorney fees, court costs and settlements if you’re sued.

For example, a client says that a Rochester event planning company failed to book the right conference room for an important meeting, which ruined a business pitch. Professional liability insurance could help the event planners pay a settlement to the client.