What Are the Leading Coverages Issued Under Commercial Insurance?
If you own a business — big, small, or even home-based — it’s important that you purchase commercial insurance to help protect your company against different risks and financial loss.
Coverages offered under commercial insurance may help protect your business and its assets against lawsuits, fire, theft, natural disasters, auto accidents, and more. Take a closer look at how this insurance works and what coverages are typically issued under it.
How Commercial Insurance Works
From business to business, coverage varies, but a few key considerations when putting together your commercial insurance policy include:
What your business does
Your location
Whether you own or rent
Whether clients visit your site
Whether you keep cash on hand
Costs for commercial insurance vary with the types of coverage needed by different businesses. Key factors influencing costs are the industry you’re in, where you operate, the number of employees you have, and whether you’ve filed claims before.
Just like any other insurance, you can pay a premium monthly or annually, higher deductibles come with lower premiums, and higher coverage limits boost premiums.
Coverages Issued Under Commercial Insurance
There are many types of commercial insurance available, and while coverages vary, here are some leading coverages issued under commercial insurance.
Commercial General Liability
Commercial insurance coverage varies, but all businesses need commercial general liability insurance. This insurance can cover someone who doesn’t work for you getting injured or having their property damaged by your business operations. The insurance can help pay medical costs and legal fees.
Commercial Property Insurance
No matter where your business is located, even in your house or apartment, you can buy commercial property insurance to help cover your:
Building
Signage
Furniture
Equipment
Inventory
This commercial insurance may help repair or replace your damaged property.
If you rent your workspace, depending on the size of the property, a landlord may require you to carry commercial property insurance.
Commercial Auto Insurance
If your business owns and operates vehicles for company purposes, you may be required by law to buy commercial auto insurance. This insurance may cover injuries or property damage caused by you or your employees while you’re driving.
A commercial auto insurance policy also might cover medical expenses for you, your employees, or passengers in a company vehicle, as well as offer comprehensive coverage for theft, collision coverage, and uninsured and underinsured coverage.
Workers’ Compensation Insurance
Except for Texas, each state in the United States requires some level of workers’ compensation insurance. Often thought of as insurance to pay medical expenses for employees injured on the job or as a result of their job, workers’ comp also helps protect businesses.
Once an employee’s claim is accepted, the employee waives the right to sue your company. It’s another level of insurance all businesses should purchase to help protect themselves from crushing financial loss.
Commercial Crime Insurance
While commercial property insurance covers many types of losses, it doesn’t cover losses from crime, such as:
Burglary
Employee dishonesty
Forgery
Fraud
Theft
You have to buy commercial crime insurance to help safeguard your business against these losses.
Getting the Commercial Insurance You Need
Every business is different, even those within the same industry. Survey your company, and take factors like your location and whether clients visit your building into account before purchasing commercial insurance. Doing so and working closely with your insurance agent can help you get the insurance protection you need for your business.