As a business owner, you know many risks come with owning a company. That’s why it’s important to have commercial insurance – to help protect your business from potential financial losses. But what is commercial insurance? And what does it cover? In this blog post, we will answer those questions and more.
We’ll discuss the most common types of commercial insurance and explain why every business should have one. We’ll also talk about the benefits of commercial insurance, such as protection from lawsuits and property damage. So read on to learn more about this type of insurance.
What Is Commercial Insurance?
Commercial insurance is a type of insurance that helps protect businesses from financial losses. It can cover various risks, including property damage, liability, and lawsuits. There are many different types of commercial insurance, so businesses can choose the coverage that best meets their needs.
How Does Commercial Insurance Work?
Commercial insurance works by reimbursing businesses for covered losses. For example, the commercial insurance policy will pay for the repairs if a business suffers property damage due to a fire. If a customer sues the business for injuries sustained on the premises, the liability coverage will help pay for the legal costs.
What Are The Different Types Of Commercial Insurance Policies?
There are many different types of commercial insurance, but some of the most common include:
Property Insurance
Property insurance is one of the most common types of commercial insurance. It covers the buildings, contents, and equipment used in your business operations. This insurance can help protect your business from damage caused by fire, weather, theft, and other perils.
Liability Insurance
Liability insurance is another common type of commercial insurance. It can help protect your business from claims alleging that your business caused someone else bodily injury or property damage. There are many different types of liability coverage available, so you can tailor your policy to meet the specific needs of your business.
Business Interruption Insurance
This type of insurance can help cover your lost income and expenses if your business is forced to close due to a covered event, such as a fire or severe weather. Business interruption insurance can help you keep your doors open and maintain day-to-day operations after a covered loss.
Workers’ Compensation Insurance
You may be required to carry workers’ compensation insurance if you have employees. This type of insurance can help cover the medical expenses and lost wages of an injured employee on the job. It can also provide death benefits to the family of an employee who dies due to a work-related injury.
General Liability Insurance
General liability insurance, also known as general commercial liability insurance, can help protect your business from various claims, including bodily injury, property damage, personal injury, and advertising injury. A CGL policy can also provide coverage for certain legal expenses incurred in defense of a covered claim.
Products Liability Insurance
If you sell products, you may need product liability insurance to help protect your business from claims alleging that your products caused bodily injury or property damage. Product liability insurance can help cover the costs of defending against a claim and any damages that may be awarded if you are found liable.
Professional Liability Insurance
Also known as errors and omissions insurance, professional liability insurance can help protect your business from claims alleging that you made a mistake or failed to deliver on your promise. This type of insurance can help cover the costs of defending against a claim and any damages that may be awarded if you are found liable.
Commercial Auto Insurance
If you use vehicles for your business, you will need commercial auto insurance to help protect your business from the risks associated with operating a vehicle. Commercial auto insurance can cover bodily injury, property damage, and other losses from an accident. It can also provide coverage for certain legal expenses incurred in defense of a covered claim.
There are many different types of commercial insurance available, and choosing the right commercial insurance policy can be difficult. There are many factors to consider, such as the business’s needs and budget. An experienced health and benefits agent can help business owners choose the right coverage for their company.
Who Needs Commercial Insurance?
Commercial insurance is important for many businesses, but some may need it more than others. For example:
- Companies that deal with a lot of cash or valuable inventory may be at a higher risk for theft. Businesses that have employees may need to take out insurance if one of their employees is injured.
- Businesses that work with other businesses or clients may also want to purchase commercial insurance. This type of insurance can help protect them if a client sues them.
So, who needs commercial insurance? It depends on the business. Some businesses may be at a higher risk for lawsuits or theft, while others may not. It’s important to assess the risks of your business before deciding if you need commercial insurance.
What Does Commercial Insurance Cover?
Now that we’ve answered the question, “what is commercial insurance?” It’s time to talk about what it covers. Commercial insurance can cover a variety of things, including:
- Theft
- Property damage
- Injuries to employees or customers
- Legal fees from lawsuits
- Business interruption
Commercial insurance can help protect your business from a variety of risks. It’s important to understand what your policy covers so you can be prepared in case something happens. Contact an insurance agent to learn more about commercial insurance and how it can help protect your business.
What Are The Benefits Of Commercial Insurance?
There are many benefits to having commercial insurance. Some of these benefits include:
Peace of mind: Knowing that your business is protected in case something happens can give you peace of mind.
Protection from lawsuits: If someone sues your business, commercial insurance can help cover the costs of legal fees.
Protection from theft: If your business is broken into or items are stolen, commercial insurance can help reimburse you for the loss.
Protection from property damage: Commercial insurance can help pay for the repairs if your business property is damaged.
Business interruption coverage: If your business has to close due to a covered event, such as a fire, commercial insurance can help reimburse you for lost income.
Don’t let your business be unprotected. Commercial insurance is vital for many businesses. Understand what coverage is available and find the best policy for your needs. Health and benefits experts can help you get a tailored policy.
Why Is Commercial Insurance Important For Businesses?
Commercial insurance is important for businesses because it helps protect them from financial losses resulting from something going wrong. Other important reasons to get a commercial insurance policy include:
- To help cover the costs of property damage
- To help protect against liability claims
- To help with business interruption expenses
What Are Some Tips For Choosing The Right Commercial Insurance Policy?
You should keep a few things in mind when shopping for commercial insurance. Make sure to shop around and compare rates from different insurers. It’s also important to make sure that the policy you select covers all of the potential risks your business could face:
Getting Multiple Policies
Some businesses may need more than one type of commercial insurance policy. For example, a business that owns a fleet of vehicles will need automobile liability and property insurance. A business that manufactures products will need product liability insurance and general liability insurance.
Determining The Amount of Coverage, You Need
The amount of coverage you need will depend on the size and type of your business. Some factors to keep in mind include:
- Your business’s revenue
- Your industry and the associated risks
- The number of employees you have
- Any special circumstances that increase your risk, such as working with hazardous materials
You may also consider adding riders or endorsements to your cybercrime or data breaches policy. This can give you extra protection if something goes wrong. Speak with your insurance agent to determine what kind of coverage is right for your business.
How Much Does Commercial Insurance Cost?
The cost of commercial insurance depends on the size of your business, the type of business you have, your claim history, and several other factors. Typically the cost of general liability insurance is around $63 per month or $755 per year as of 2022. The rates can vary depending on your state, the type of business you have, and how many employees you have.
Businesses considered high risk would pay more for their commercial insurance than businesses considered low risk. Businesses that are high risk include those in the construction industry, those that deal with hazardous materials, and those that have a lot of employee turnover. Low-risk businesses include office-based businesses, retail stores, and service providers.
How To Get Commercial Insurance?
Now that you know what commercial insurance is and the different types of coverage available, you may be wondering how to get it for your business. The best way to get commercial insurance is to work with Nesso Benefits.
Our Nesso Group team will provide all the necessary information regarding commercial insurance so we can select the best policy for your needs. We understand that every business is different, and we will work with you to find the best possible coverage. Reach out to learn more about how we can help you.
