Protecting your business from legal risks is essential. Legal disputes can happen unexpectedly, and the costs add up fast. To stay prepared, consider several types of insurance. While your exact needs may vary, the following coverages can help protect your business from legal defense expenses.

First, consider General Liability Insurance.
This is a foundational policy for most businesses. It covers third-party claims involving bodily injury, property damage, and personal injury. If someone gets hurt at your location or if your product causes harm, this policy responds. It helps pay for medical bills, legal defense, court costs, and settlements. In addition, it covers advertising injury and reputational claims.

Next, think about Professional Liability Insurance—also called Errors and Omissions (E&O) coverage.
If you provide services or professional advice, this insurance is vital. It protects against claims that your service caused a financial loss. For example, a client might sue for a mistake, oversight, or bad advice. This policy helps cover legal defense, court fees, and any damages awarded. It’s especially important for consultants, attorneys, healthcare providers, and financial advisors.

In addition, you may need Directors and Officers (D&O) Insurance.
This protects your company’s leadership team. If directors or officers face lawsuits for mismanagement, breach of fiduciary duty, or other alleged wrongful acts, this policy helps. It covers legal defense costs, settlements, and judgments. Moreover, it protects both the individuals and the company when named in a lawsuit. This coverage is often essential for growing businesses, nonprofits, and corporations.

Also, consider Employment Practices Liability Insurance (EPLI).
Any business with employees should carry this. EPLI covers claims from workers related to discrimination, wrongful termination, harassment, and retaliation. It pays for your legal defense and may cover settlements or judgments. With employment claims on the rise, this protection is more important than ever.

Furthermore, think about Cyber Liability Insurance.
If your business collects or stores customer data, this policy is critical. It protects against data breaches, cyberattacks, and other digital threats. In the event of a breach, it helps cover legal fees, customer notifications, credit monitoring, regulatory fines, and public relations costs. It can also help restore compromised systems and data.

Another smart option is Commercial Crime Insurance.
This protects your business against theft, fraud, forgery, and employee dishonesty. It covers the cost of stolen funds or property and can help with legal defense if you face related lawsuits. If your business handles cash, inventory, or financial accounts, this coverage adds a strong layer of protection.

Finally, if your business owns intellectual property, consider Intellectual Property (IP) Insurance.
This policy covers legal expenses if someone sues you for IP infringement. It also helps you defend your own rights if someone uses your trademark, copyright, or patent without permission. IP lawsuits can be expensive and complicated, so this insurance helps you stay protected.