Commercial insurance can protect companies from losses caused by events that may occur in the normal course of business. Companies have a variety of insurances, including property damage, legal liabilities, and employee-related risks. The company evaluates its insurance needs based on potential risks, which depends on the type of company's operating environment.
As a business owner, your company faces different risks every day. The purpose of insurance is to help protect your business from these risks. Commercial insurance helps protect your business’s financial assets, intellectual property, and physical property from:
l property loss
l Employee injuries and illnesses
l Loss of income
You can get different types of commercial insurance to help protect your business, including:
l Commercial vehicle
l Workers' compensation
l Commercial Responsibility
l commercial estate
Types of commercial insurance
There are several types of commercial insurance that small business owners might consider, including:
Professional liability insurance
Professional liability insurance covers negligence claims due to errors or failure to perform. There is no one-size-fits-all professional liability insurance. Each industry has its own unique problems to be solved.
Property insurance covers equipment, signs, inventory and furniture in the event of a fire, storm or theft. However, it does not include large-scale destruction events such as floods and earthquakes. If your area is at risk of these issues, you will need a separate policy. Another exception is very high-value and expensive personal property-this is usually covered by the purchase of policy add-ons called "additional insurance". If there is a claim, the property insurance policy will compensate the policyholder for the actual value of the damage or the replacement cost of repairing the problem.
The homeowner’s insurance policy does not cover home-based businesses, for example, commercial property insurance covers businesses. If you run a home-based business, please consult additional guarantees regarding equipment and inventory.
Product Liability Insurance
If your business produces products for sale, product liability insurance is very important. Any company may be sued for damage caused by its products. In this case, product liability insurance can protect the company.
Any vehicle used for business should be fully insured. At the very least, companies should insure against third-party injuries, but comprehensive auto insurance will also cover vehicles in accidents. If employees use their own cars for business, their own personal insurance will protect them in the event of an accident. A major exception is if a person (including a delivery person) provides goods or services for a fee.
Business interruption insurance
A business interruption (or continuation) policy is a type of insurance, especially for companies that need a physical location to conduct business, such as retail stores or manufacturing facilities. Business interruption insurance can compensate companies for the loss of income during the event that caused the interruption of the normal business process.