Skip to main content

What is Commercial Insurance?

By February 14, 2019April 9th, 2020Commercial Insurance

What Is Commercial Insurance?

Commercial insurance is insurance that protects a business, business owners and employees.  Commercial insurance protects you, the business owner, from any unforeseen circumstances that could affect your business.

Not every business is the same.  That being said, neither is every commercial insurance policy.  There is no cookie cutter solution that works for every business.

So, when you’re shopping for a policy that fits your business, be sure that it includes all appropriate coverage required to fully protect you and your workplace.

Here are some of the types of coverage available:

  • General Liability Insurance
  • Property Insurance
  • Business Owner’s Policy
  • Commercial Auto Insurance
  • Worker’s Compensation
  • Professional Liability Insurance
  • Directors and Officers Insurance
  • Cyber/Data Breach Insurance
  • Credit Risk Insurance
  • Business Interruption Insurance

If you work out of your home, be sure to review or have some of the following coverage as well:

  • Homeowner’s Insurance
  • Renter’s Insurance
  • Life Insurance
  • Personal Auto Insurance
  • Personal Umbrella Insurance

If you’re not sure which types of insurance are applicable to your business situation, ask your insurance agent!

Shopping for a Policy

When it comes to choosing insurance, most business owners want to know what basic coverages they need and how much it will cost.

Other things to consider when getting quotes for a commercial policy are:

  • Location of your business
  • Number of employees
  • Gross annual revenue
  • Whether the business owns or rents vehicles
  • Whether the business owns or rents the property they operate from

Coverage Components

General Liability Insurance

Every business needs to have liability insurance.  This policy component provides both defense and damages should you or any of your employees, or your products or services cause or are alleged to have caused bodily injury or property damage to a third party.

Property Insurance

If a business owns the building that it operates out of, or has equipment that it owns (vehicles, computers, inventory, tools, etc.), this policy protects all of these things in the event of a fire, vandalism, theft, smoke damage and so on.

Business Interruption Insurance

Business interruption insurance protects you in the event that your business is unable to operate.  This type of policy compensates you for lost income if your company has to vacate the premises due to disaster related damage.

Business Owner’s Insurance

This policy packages all required coverage a business owner would need.  It combines business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance.  This type of insurance can be customized to cover the needs of a particular business.

Worker’s Compensation

Worker’s compensation provides insurance to employees who are injured on the job.  This component provides wage replacement and medical benefits to those who are injured while working.

There are a few other policy components that business owners may want to consider in addition to the traditional components of a commercial policy.

These additional components include:

Umbrella Policies

These policies provide coverage over and above your other liability coverage.  They are designed to protect against unusually high losses.

Specialized Liability Insurance

Some businesses require more specific protection.  Some businesses may require Employment Practices Insurance, Directors and Officers Liability Insurance, or Business Identity Theft Insurance or Errors and Omissions Insurance/Professional Liability Insurance.

Terrorism Insurance

Many policies included coverage for acts of terrorism prior to September 11, 2001.  Not all of them include this coverage at no extra charge, it has become a separate policy.  Consult with your agent to assess your risk in your business’s location.

Now that you have the policy basics in hand, it’s time to discuss your business’s insurance needs with your insurance agent.  Contact us today!