A Commercial General Liability (CGL) policy protects your business from financial loss if you are liable for property damage, bodily injury, or personal and advertising injury caused by your services, business operations, or employees. It covers non-professional negligent acts, making it a foundational part of managing your business risk.

Here are just a few examples of situations in which your business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages

No business is immune from disaster. Every year, businesses temporarily shut down—or close forever—because of a disaster such as a flood, fire, or hurricane. According to the Federal Emergency Management Agency (FEMA), 40 percent of companies do not reopen after a disaster, and another 25 percent fail within one year.

Fortunately, you can take proactive steps to mitigate the impact of a disaster on your business. In addition, carrying adequate insurance coverage can help your business get back on its feet quickly.

Injuries to employees can be devastating for businesses, especially small businesses with fewer employees available to take on new roles when an injured worker is on leave. While workers compensation insurance will help pay medical costs and replace an injured employee’s lost income, your business will have to absorb costs associated with reduced productivity, overtime, training replacements, and so on.

Businesses of all sizes face potential losses due to criminal activity. Depending on the nature, size and location of your business, your company may be vulnerable to various types of crime—from burglary to employee theft to fraud.

In addition to purchasing specialized crime (or “fidelity”) insurance, you will want to consider taking steps that prevent crimes from happening.

Preventing theft by outsiders

Taking precautions can deter criminals from targeting your business for burglary. Consider installing and maintaining:

Whether you own or lease a single business car or an entire fleet of commercial vehicles, you’ll need to purchase commercial auto insurance. Your insurance professional can help you weigh your risks and evaluate coverage options.

But even with insurance in place, you’ll want to take steps to prevent accidents and protect your employees and vehicles. Your business can reduce the chance of an accident by establishing and enforcing the following practices and policies.

It’s tough to face a situation that sets back your business. Imagine if:

In many ways, shopping for business insurance is similar to making other important purchases, such as buying a car. You’ll want to compare prices, features and quality. At the same time, evaluating your business risks, determining your insurance needs and weighing options can be a complex process. Follow the steps below for the best results.

Depending on the nature and size of your business, evaluating and purchasing insurance coverage can be a daunting task. It may make sense to work with an insurance professional—a broker or agent—who can help you review your insurance options and customize coverage to fit your business.

But how do you find the right insurance professional for your needs? Here are some tips for starting your search.

Terrorism coverage in the United States operates as a public-private risk-sharing partnership that allows the federal government and the insurance industry to share losses in the event of a major certified terrorist attack. The Terrorism Risk Insurance Act (TRIA), enacted by Congress in November 2002, ensures that sufficient financial capacity is available for businesses to recover and rebuild following such events. Under TRIA, all property/casualty (P/C) insurers in the U.S. are required to make terrorism coverage available to commercial policyholders.

Though rare in many areas of the country, earthquakes can be highly destructive. Commercial property insurance covers some natural events, such as wind damage, but you must purchase separate coverage if you want protection against earthquakes. This Q&A  will help you weigh your risks and determine if you need this type of coverage. In addition, ask your insurance professional if your business should consider adding earthquake insurance.