Commercial insurance coverage is necessary to protect a company, its owners, and employees. Operating a business isn’t without risks, and these risks could prove catastrophic for the company if the owner doesn’t purchase adequate insurance. Read on to learn more about commercial insurance types and how they protect your company.
1. Commercial Auto Insurance
Commercial auto insurance applies to the company’s vehicle, the driver, and passengers. If other parties were injured by the commercial driver, the policy covers their medical costs and property damage costs. Business owners gain coverage for any cargo that could become damaged during an accident.
Small business owners who use their personal vehicles for business purposes may require commercial and standard auto insurance coverage. Commercial business coverage applies to accidents that happen during business hours, and the standard auto coverage applies to non-business-related accidents and liabilities.
2. Professional Liability Insurance
Professional liability or errors and omissions insurance covers negligence, copyright infringement allegations, libel, slander, and data breaches. Business owners also get protection against providing the wrong advice to a client. The policy pays for attorney fees, court costs, settlements, and serious financial losses.
3. Commercial Property Insurance
The company’s physical property is covered by a commercial property policy. The policy pays when there’s property damage because of fires, natural disasters, vandalism, and break-ins. This policy also covers the company’s on-site inventory, equipment, and furnishings. The business owner may need additional coverage for assets that exceed the policy’s restrictions.
4. Business Interruption Insurance
Business interruption insurance pays the policyholder when the business must shut down unexpectedly. The owner can use the financial benefits for business-related costs. They can pay their workers, property rent, loan payments, or income taxes with the benefits. If they cannot use the company’s physical location, the policy offers relocation funds.
5. General Liability Insurance
General liability coverage applies to bodily injuries and property damage sustained by a third party. The policy protects against personal and advertising injury, slander, libel, and copyright infringement. The company gains protection against financial losses because of premises or product liabilities, and the insurance includes benefits for legal defense services.
Companies can get general liability coverage through a business owner’s policy along with commercial property insurance. You can also add other policies into these umbrella policies to save more on overall insurance premiums.
6. Worker’s Compensation Insurance
Worker’s compensation insurance provides medical coverage and financial benefits to workers injured on the job. All companies that hire more than one employee must purchase the policy to comply with federal laws.
Through the policy, the company can provide a settlement to workers who develop a permanent disability because of their injuries. The policies apply to injuries that happen because of job duty performance, exposure-related illnesses, and repetitive stress injuries. The policy provides families with death benefits if the employee dies as a result of work-related illnesses or injuries.
Many types of commercial insurance coverage provide protection against liability and serious financial losses. Purchasing insurance that protects your company based on what your company does can prevent financial losses that shut down your company. Request a free quote for commercial insurance today.
