Commercial insurance is one of the most important investments a business owner can make. It can be instrumental in protecting a business from potential loss caused by unforeseen and unfortunate circumstances, such as theft, property damage, liability, and workers compensation. We have provided more information below to help you understand commercial insurance a bit better.
INFORMATION & RESOURCES
GENERAL LIABILITY INSURANCE
Liability insurance covers injuries that you cause to third parties. If someone sues you for personal injuries or property damage, the cost of defending and resolving the suit would be covered by your liability insurance policy. A general liability policy will cover you for common risks, including customer injuries on your premises. More specialized varieties of liability insurance include:
WORKER'S COMPENSATION INSURANCE
Worker's compensation insurance covers you for an employee’s on-the-job injuries. Businesses with employees are generally required by state law to carry some type of worker's compensation insurance. In most cases, worker's compensation laws prohibit the employee from bringing a negligence lawsuit against an employer for work-related injuries.
COMMERCIAL AUTOMOBILE INSURANCE
Commercial automobile policies cover the cars, vans, trucks and trailers used in your business. The coverage will reimburse you if your vehicles are damaged or stolen, or if the driver injures a person or property.
Crime insurance covers theft, burglary, and robbery of money, securities, stock, and fixtures from employees and outsiders.
Professional liability insurance, aka Errors and Omissions, E&O, or Malpractice insurance, covers losses when a professional’s conduct falls below the profession’s standard of care. For example, if an architectural firm presents a design with inherent flaws that eventually lead to a property loss, bodily injury, or both, then firm can be held liable. Professional Liability insurance can protect, dentists, accountants, real estate agents, architects, attorneys and other professionals. Contractor's Errors and Omissions is also widely available for certain trades.
Cyber Insurance is a rapidly evolving coverage within the insurance industry. First party coverage is available for your costs in recovering from a security breach, while many policies also offer third party coverage for your notification and liability costs if your customer's data is compromised.
Real estate insurance pays for losses and damages to real or personal property. A property insurance policy would cover, for example, fire damage to your business. Additional coverage includes, but is not limited to:
BUILDER’S RISK INSURANCE
Builder’s risk insurance covers buildings while they are being constructed. The policy would cover losses if a storm were to take down the partially constructed building.
BUSINESS INTERRUPTION INSURANCE
Business interruption insurance(aka Business Income) covers lost income and extra expenses resulting from a covered property loss. For example, if a fire forces you to close your doors for two months, this insurance can reimburse you for salaries, taxes, rents, and net profits that would have been earned during that period.