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A Guide to Understanding Commercial Insurance

A Guide to Understanding Commercial Insurance
by Arthur Williamson

Part of the journey of starting a business is doing all that you can to protect it from the onset. While there are growing pains that naturally stem from getting everything set up, following a commercial insurance guide can inform you of everything you need to know about safeguarding your business at every stage.

Small business owners may be concerned about possible setbacks from property damage or other liability claims. There is no way to foresee what could go wrong in your small business, therefore business insurance will give your company a sense of security, help you maintain a sense of integrity, and allow you to operate without financial losses, even during a possible business interruption.

Running a small business can be expensive, and commercial insurance policies guarantee that you will not spend out-of-pocket if you do not have to. Coverage options for business insurance are comprehensive, allowing you to tailor your policies to your exact needs and risks.

Why Businesses Need Commercial Insurance

Commercial insurance supplies you with coverage to protect your finances, your reputation, employees, and clients. You can never be too prepared, and a commercial insurance policy will soften the blow of any potential fallouts and damages.

The Benefits of Commercial Insurance

No matter how careful you may be, there are always risks with running a business. As such, there are many types of insurance that when combined, can act as armor from losses and setbacks. There are numerous benefits of commercial insurance, such as the following:

  • Facilitates sound risk management
  • Manages potential financial losses
  • Helps protect you from lawsuits
  • Offers coverage for property damages
  • Offers coverage for bodily injuries
  • Offers coverage for advertising liability
  • Encourages business continuity
  • Maintains your business' integrity and reputation

What to Consider When Choosing an Insurance Provider

When choosing an insurance provider, there are a host of factors you can consider. Insurance companies may have similar offerings, and you may be able to distinguish which insurance broker or provider is the best match for your company when you have a clear rubric to follow.

Spend some time doing research on insurance companies and insurance policies. This way, you will have an idea of what is out there and narrow down your search for an insurance company that you trust will give you the guidance and the support that you need. To help you with the process, you can consider the following factors in choosing a commercial insurance provider for your business:

  • Experience and expertise in working with your particular industry
  • An array of insurance products that will grow and evolve with you at every stage of your business
  • Competitive and robust quote and coverage options
  • Customer service ratings and response time of insurance agents
  • Reputation among former clients whose business may be similar to yours
  • Expertise in dealing with and handling claims and claims procedures
  • Proper documentation and licensing in your business' geographic area

The Different Types of Commercial Insurance

There are several types of commercial business insurance policies, and knowledge of each one of them can give you an understanding of which combination of insurance coverage will give your business the protection that it needs.

General Liability Insurance

General liability insurance, or business liability insurance covers general claims related to third party property damages or bodily injury. This is a basic policy that any business owner must prioritize. The insurance policy will make sure that legal fees and medical expenses that arise out of the claim will be taken care of.

While the claims that will be covered are related to your company's operations, products, or services, note that it does not cover auto accidents, employee injuries, employee illnesses, professional mistakes, or acts made intentionally.

Professional Liability Insurance

A professional liability insurance policy provides coverage for negligence and other related claims such as misrepresentation or malpractice. This liability policy is often suited for professionals in certain industries, such as doctors, lawyers, or accountants since general liability insurance falls short of these liability claims.

In some cases, professional liability insurance is also known as errors and omissions (E&O) insurance or medical malpractice insurance, depending on the context in which it is applied. Note that it only covers claims that are listed in the policy, and that claims must be made within the policy period as well.

Commercial Property Insurance

Commercial property insurance covers your commercial property. This means that it will provide coverage for events such as theft, fire, or natural disasters. Most of the time, it is an umbrella policy that goes in tandem with general liability insurance. With this type of coverage, the assets of your commercial property are taken into consideration, together with your business property location.

These two factors will inform an insurance company about what commercial property policy works best for you, inclusive of the proper replacement values and level of coverage.

Workers' Compensation

Workers' compensation is a type of insurance that will help protect your employees. Your company should secure workers' compensation insurance, in the event that they are injured or fall ill while on the job. It will ensure that they receive proper medical care and other health benefits.

As an employer, workers' compensation insurance also grants you some level of security as your workers will not be able to sue you – unless they were intentionally injured, or became injured doing work external to their job description. Although worker's compensation is a basic requirement for all businesses, levels and types differ for every state.

Business Owner's Policy

A business owner's policy (BOP) is a type of coverage that combines business liability insurance together with commercial property insurance. This type of business insurance will cover claims that may surface from your small business operations, from property damage to bodily injury. It is one of the best employment practices small business owners can adopt.

Business owners will also find that this reasonably addresses a possible loss of income, as it covers claims from theft, fire, and other disasters listed on the coverage policy. Depending on your industry and other unique needs, you can speak with an insurance agent about possible add-ons to the coverage.

Add-on coverage can protect your business from financial loss from things like data breaches, or other events that are specific to your niche. It is a great policy for a small business owner who is new to the industry because it is highly customizable.

Do not wait until losses or dilemmas occur. Invest in your future today. Securing commercial business insurance is vital to securing your business' future.

Want to learn more? Assured Standard offers a wealth of knowledge on commercial business insurance. Contact us today and let us help you make the right decisions.

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Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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