A Dummy’s Guide to Commercial Insurance

Few things give new business owners nightmares like unforeseen damages.

Whether someone breaks into your property, one of your company trucks causes an accident, or a worker is injured on the job, the related costs can be brutal.

That’s where commercial insurance comes in. As you work to grow your company, your policy covers all those types of accidents—provided you can navigate the complex world of insurance!

If you’re not sure where to start, we’ve got you covered. Here’s what you need to know about commercial insurance.

 

What Is Commercial Insurance?

Just as you secure your own home and belongings against potential damage, disaster, or other threats, you’ll need to protect your business. Commercial insurance helps your company minimize the risks of doing business, both for the company as a whole and for the employees.

As you’d expect, commercial insurance can have much higher limits of coverage than personal insurance, but this depends on the size of your business. Your needs will differ based on the industry you work in, as well as the types of tasks your company handles from day-to-day.

For this reason, you may decide to opt for one or several of the types of policies below. Working with experts at a commercial insurance agency can give you a better idea of the coverage you’ll need, so read more here.

 

What Are the Different Types of Commercial Insurance?

There are several different kinds of commercial insurance, allowing you to choose the ones best suited to your business. Here are a few of the most common types:

Commercial Liability Insurance

This type of insurance can come in different forms, and it’s sometimes used interchangeably with the term “commercial insurance.”

Liability insurance protects you when someone is injured as a result of a product or service you offer or because of your company’s negligence. This injury can happen on or off of your property.

Commercial Property Insurance

If you have a personal property insurance policy, you’ll already be familiar with the idea of this type of commercial insurance. Commercial property insurance protects your buildings and possessions from theft and natural disasters.

Workers’ Compensation Insurance

When an employee is injured on the job, this type of policy provides coverage. In a case like this, your employee will lose the right to sue you in exchange for coverage of their medical expenses and lost wages.

Errors and Omissions Insurance

Everyone makes mistakes, but some of them are bigger than others. Rather than paying for a lawsuit over a mistake you’ve made, you can rely on this type of policy to cover your legal fees.

Cyber Liability Insurance

The name of this policy type may suggest that only tech companies need this insurance, but most modern companies should consider it. In the case of a data breach that releases sensitive client information, this policy will help cover the financial repercussions.

Commercial Auto Insurance

If your business owns cars, trucks, or vans for service or delivery, you’ll need these vehicles to be insured. This is true for large fleets and small businesses, as you’ll want the same types of liability, collision, and comprehensive coverage as you’d have with your personal auto policy.

 

Find Your Insurance Policy Today

If you’ve made it to this point, you know how commercial insurance can protect you from some of the most damaging events that could impact your business. From here, you’ll need to decide what types of insurance your business needs and how to get them. Fortunately, finding the right policy doesn’t have to be a nightmare: just reach out to commercial insurance companies in your area for help!

Looking for additional tips to make the most of your business? Check out our other posts for more helpful guides.