Starting a business is always a major risk for any entrepreneur. In addition to battling and outsmarting your competitors, you must also protect your business from the unavoidable risks that come from having employees, and working with the public.

Luckily, insurance policies can mitigate this risk and ensure you are protected in the event your company faces legal actions. In particular, there are three types of insurance your business should consider purchasing. 

Worker's Compensation 

If you have employees, it is a legal requirement for you to invest in worker's compensation insurance. These policies are designed to protect the employee in the event they suffer injuries while on the job. Considering the expensive costs of medical treatment, it is no surprise that being legally liable for an employee's injuries can be devastating for a small business. 

Commercial Auto Insurance

You may not think that your business needs a commercial auto insurance policy, but if your employees ever drive a car for your business's needs, you should consider investing in these policies. Car accidents can result in extensive property damage and major injuries or death, and an employee's insurance may not be enough to account for these costs which can make your company liable for these damages. 

Interestingly, some people are under the belief that these policies only apply to company cars. Yet, this is not the case, and it is possible to purchase an auto insurance policy that covers employees that are operating their own cars. 

General Liability Protection

It is possible for a range of accidental injuries to strike customers or clients that are visiting your business. Regardless of how the injuries are sustained, your business may be legally liable for lost wages, medical bills and emotional trauma. If a lawsuit is filed, an uninsured business could be forced into bankruptcy protection due to the outcome of some of these cases. 

Luckily, general liability protection will pay for unavoidable damages that result to those visiting your business. Interestingly, it should be noted that most of these policies have stipulations for when the damages will be covered. You should make it a point to always follow these rules, or you may find yourself liable for these crippling damage payments. 

Keeping your business safe and profitable involves more than outwitting your competitors. You must also ensure that lawsuits and civil liabilities do not sap your company's financial strength. By having these insurance policies, you can help ensure you are protected from unfavorable verdicts in lawsuits stemming from these issues. 

Check out commercial insurance companies for more information.