Business Insurance Essentials: Key Policies Every Company Should Understand in Pennsylvania, New York, and Nationally

Disclaimer: This article is for informational purposes only and is not legal advice. Reading it does not create an attorney–client relationship. Todd Nurick and Nurick Law Group are not your attorneys unless and until there is a fully executed written fee agreement with Todd Nurick or Nurick Law Group.

Introduction

Every business, regardless of size or industry, faces risk. Comprehensive insurance coverage protects companies from financial loss, regulatory exposure, and operational disruption. As a business law attorney licensed in Pennsylvania and New York, Todd Nurick of Nurick Law Group advises companies nationwide on how insurance policies intersect with contracts, compliance, and corporate governance.

Understanding the major types of business insurance is essential for making informed decisions that protect the company and its stakeholders.

General Liability Insurance

General liability coverage protects businesses when there are claims related to bodily injury, property damage, advertising injury, or other accidental harm. It is one of the most foundational types of insurance and is required in many commercial leases and vendor agreements.

Businesses in Pennsylvania and New York often encounter contractual requirements for specific liability limits. Reviewing those limits with counsel is important to avoid underinsuring.

Professional Liability (Errors and Omissions)

Professional liability insurance protects companies that provide services or advice. It covers claims of negligence, mistakes, or inadequate work.

For companies in consulting, marketing, software services, finance, design, architecture, or professional services, this type of insurance may be essential. Many contracts require proof of this coverage before work begins.

Workers Compensation Insurance

Pennsylvania and New York both require employers to carry workers compensation coverage for employees. The policies cover medical costs and lost wages when employees are injured on the job.

Independent contractor classifications matter here. Misclassification can create legal exposure if a worker suffers an injury and the business lacks proper coverage.

Cyber Liability Insurance

Cyber incidents are increasing nationwide. Cyber liability insurance helps cover the costs of data breaches, ransomware events, system restoration, legal fees, customer notification, and regulatory compliance.

Companies with customers in Pennsylvania or New York must comply with state breach notification statutes. Cyber insurance can help manage the financial impact of these obligations.

Commercial Property Insurance

This covers damage to buildings, equipment, inventory, and other physical assets. Many policies also include business interruption coverage, which compensates for lost income caused by a covered event.

Businesses with leased space should review their lease agreements because landlords often require specific property insurance responsibilities.

Employment Practices Liability Insurance (EPLI)

EPLI covers claims relating to hiring, termination, discrimination, harassment, and workplace practices. As employment regulations continue to evolve, especially in New York, many companies secure EPLI to mitigate litigation risk.

Directors and Officers Insurance (D and O)

Board members and officers can be sued for decisions made on behalf of the business. D and O insurance protects leadership from personal liability when claims arise related to breaches of fiduciary duty, governance issues, or decisions that result in financial loss.

This is particularly important for companies with investors, boards, or complex governance structures.

Commercial Auto Insurance

Businesses that use vehicles for deliveries, transportation, or operations must carry commercial auto insurance. Personal auto policies usually do not cover commercial use.

Umbrella and Excess Liability Insurance

Umbrella policies provide additional coverage above the limits of underlying policies. For businesses with high exposure, this extra layer can be crucial in managing catastrophic losses.

Why Business Insurance Matters for Governance and Contracts

Insurance is more than financial protection. It is a critical component of corporate governance and contract compliance. Many vendor agreements, leases, partner agreements, and client contracts require specific policies, coverage amounts, or endorsements.

As outside general counsel, Todd Nurick and Nurick Law Group help businesses:(1) Review contract insurance requirements(2) Identify appropriate coverage types(3) Evaluate governance obligations(4) Coordinate between legal and insurance professionals

Proper insurance planning strengthens risk management and avoids disputes.

Conclusion

Insurance protects businesses from significant legal and financial exposure. The right combination of general liability, professional liability, cyber coverage, EPLI, workers compensation, and other policies helps companies operate with confidence in Pennsylvania, New York, and nationwide.

Todd Nurick and Nurick Law Group provide comprehensive business law guidance, ensuring that insurance choices align with corporate governance, contracts, and long term business strategy.

Sources

United States Small Business Administration (SBA)Pennsylvania Insurance Department

New York Department of Financial Services National Association of Insurance Commissioners