What is Commercial Insurance?
Commercial insurance is coverage offered to businesses, companies, and corporations. It is based on protecting business owners from claims, losses, and damages. Ranging from auto coverage to general liability should customers have a slip and fall case or any other type of liability claim against the business, commercial insurance will protect the business owner in a variety of ways.
What Does Commercial Insurance Cover?
Commercial insurance covers aspects and concerns related to businesses and business owners. From protecting business owners from legal issues and liability to offering them protection if employees have workers compensation claims, commercial insurance covers an expansive area. The general premise of commercial insurance is to protect business owners in their everyday commercial business dealings.
How Does Commercial Insurance Work?
When you first obtain a commercial policy you select the one that suits your individual business needs. Whether you’re searching for insurance protection should you have a lot of customers on your property on a daily basis or you operate a fleet of commercial vehicles and need coverage for this aspect of your business, a commercial policy will work wonders.
When deciding to get a commercial policy, you first need to determine what your business needs are in the way of coverage. Consult with an insurance company representative, let them know what business operation you are involved in, and tell them what you are looking for with regard to a commercial insurance policy. You’ll be able to choose the commercial insurance policy that works best for your business, select a deductible, and then pay a premium to have the insurance policy in full force.
What Are the Types of Commercial Insurance?
- General Liability: General liability is a common type of insurance that businesses acquire. This policy protects the business owners against claims from third parties who sustain injuries. An example of this is a slip and fall instance where a customer slips and falls on your property. The general liability insurance will protect the business owner in the case of legal claims.
- Workers Compensation: Workers compensation insurance relates to employees injured while on the job. This insurance policy will help to pay for claims by employees when they experience injuries during their daily work.
Business Owners Policy: A business owners policy is a collective group of insurance offerings suitable for those who own businesses. These packages include all types of insurance offerings a business owner could want and need for their line of business.
- Commercial Auto: If your business owns and operates commercial vehicles, you’re going to want to have a commercial auto insurance policy in place. This will cover cars, vans, trucks, and trailers used in the operation of your commercial entity.
- Builders Risk: Builders risk insurance is optimal for construction companies. This covers the construction phase of buildings and provides insurance coverage while they are being built.
- Errors and Omissions: Errors and omissions insurance covers mistakes or failures by the insured that causes harm to a third party through an inadvertent error. This does not include poor judgment or intentional acts.
- Inland Marine: Inland marine insurance is needed to cover property in transit or when it’s being held at the property of the insured.
Who Needs Commercial Insurance?
With so many aspects of commercial insurance, it’s easy to see that many companies will require commercial insurance. Whether your business is in charge of a fleet of autos or trucks or operates a store that sees a lot of foot traffic, having an insurance policy in place that covers every possible occurrence a business owner could face is essential.
Why Do You Need Commercial Insurance?
As a business owner, you may be wondering what type of commercial insurance is available to you and why you need to acquire this type of insurance. Here are some common reasons to obtain commercial insurance for your business:
- You and your employees operate commercial vehicles.
- You own a construction company.
- You own a business that sees customer traffic daily.
- Your company holds or transports the property of others.
- You need insurance to protect your employees and claims arising from potential employee injuries.
- Your business is a multi-faceted one that has many moving parts and an overall insurance policy is in your best interest.
What Should You Look for in Commercial Insurance?
When searching for a commercial insurance policy, you want to consider the individual features of the potential policies. Here are some features your insurance policy should include:
- Expansive insurance coverage.
- Low deductible.
- Low premium.
- Least restrictive coverage requirements.
- Favorable features for the insured.
- Easy to submit claims when necessary to do so.
When you decide it’s time to obtain commercial insurance for your business, make sure you review the options carefully and choose a policy that will best suit your business and provide the best coverage possible.