At some point you or someone within your business will likely make some form of mistake. In today's litigious society, you will want to be sure that your business is protected from claims when such a mistake occurs.

There are four general types or categories of business liability insurance coverage available. They include general liability, professional liability, product liability and employment practices liability. To ensure that you are properly insured, you must have a basic understanding of each type of coverage and which type is the best fit for your company.

A classic mistake is to purchase the wrong form, thinking you are covered only to learn that the specific incident that occurs is not under the umbrella of the insurance you purchased. Likewise, it is foolish to pay for all forms of coverage if there are forms that are not relevant to your enterprise.

For more on the various types of coverage and how to discern which category is relevant for your company, see:

http://www.fool.com/news/commentary/2006/commentary06102306.htm?ref=foolwatch