Just as you need personal insurance for your home and vehicle, if you are a small business owner, you should also have commercial insurance for your business.
Commercial insurance can help protect your business from financial risk when a variety of covered events occur. As a business owner, it’s important to choose the right type of commercial insurance for your company.
In this comprehensive guide to commercial insurance, we’ll go over the different types of commercial insurance, and answer some frequently asked questions.
Types of Commercial Insurance
There are several types of commercial insurance. Your insurance agent can help you choose the right type of commercial insurance for your needs.
General Liability Insurance
General liability insurance is a type of insurance that offers a range of specific coverages including:
- If someone is injured on your property due to negligence – either by you or an employee
- Damage to property caused by you or by an employee
- Advertising injury (including defamation)
In addition, if you are sued for any of the reasons listed above, your general liability policy may cover legal and court fees, as well as settlements, depending on your specific policy terms.
Workers Compensation Insurance
Workers compensation insurance provides coverage for employees who are injured on the job. This type of insurance covers medical expenses and lost wages.
Property Insurance
If a covered event occurs, property insurance will pay to replace covered belongings like computer equipment, office equipment, and more. If you own the building where your business is located, your property insurance can also pay to repair or replace that building. Property insurance can provide business interruption coverage while you’re replacing and repairing your business property.
Cyber Liability Insurance
Cyber liability insurance helps protect your business when a cyber breach affects your business or your clients. This type of insurance can help offset costs associated with breaches and recovery, depending on your policy’s coverage.
Errors and Omissions Insurance
Errors and omissions insurance protects your business from being sued in the event that your business makes a mistake.
The Anatomy of a Commercial Insurance Policy
A commercial insurance policy has many of the same parts as a personal insurance policy, including:
- Deductible. The deductible is the amount that your business must pay before your insurance can pay for the rest of the claim. Not all commercial insurance policies have deductibles.
- Policy limits. A policy limit is the maximum amount your insurance policy will pay when a covered event occurs.
- Coverages and exclusions. The list of coverage is the list of conditions and types of coverage your policy offers. Exclusions are the conditions that your policy does not cover.
Commercial Insurance FAQ’s
Is commercial insurance required for small businesses?
Some types of commercial insurance may be required depending on your business type and location. For example, businesses with employees are often required to provide workers comp insurance. Check your local regulations and consult with your insurance agent.
What impacts the cost of commercial insurance?
The cost of your commercial insurance depends on many factors, including which types of insurance your business needs, coverage limits, whether your business has filed insurance claims in the past, and other factors. Talk to your insurance agent to find out what you can do to limit the cost of your insurance policy.
Can I get several types of commercial insurance at once?
Yes, you can tailor your commercial insurance to the needs of your business. Your insurance agent can help you choose the type of insurance policy that’s best for your business.
What should I look for in an insurance agent for my commercial insurance policy?
Look for an insurance agent that is responsive to your needs, quick to answer your questions and a good listener. Call today to learn more about how your insurance agent can help you get a commercial insurance policy.
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