Commercial insurance comes in several forms and serves to cover losses associated with your business activity. It protects the leadership of a business, as well as a business’s employees from incurring losses as a result of a workplace accident. And, it can make the difference between staying in business through unforeseen hardships, or shutting the doors for good.
Learn everything you need to know about commercial policies for businesses of every size and industry. Find out about the different options available for protecting your commercial enterprise from the full brunt of liability costs. And, discover how this type of business insurance can be a vital resource in the face of legal liability associated with an incident involving your business and employees.
The Total Guide to Commercial Insurance and What it Covers in 2021
Different types of commercial insurance protect your business from different kinds of risks. Also called business insurance, it covers many of the brutal expenses that your business incurs when being held liable for losses. Instead of shouldering the full burden of the risk, business insurance provides a buffer between your business’s liable expenses and its profits.
Business insurance typically carries a higher coverage limit than that of a personal insurance policy, since it has to provide coverage for numerous employees and business assets. Depending on the type of business, you can get coverage for your business’s financial wellbeing, reputation protection, and employees. Since every business is unique in the risks associated with its operation, every business must choose from a menu of coverage options available to create a policy that serves the unique needs of your business.
The Most Common Type of Commercial Business Policy
When it comes to a basic business insurance policy, many businesses begin with a standard Business Owners Policy or BOP. This basic policy provides three essential forms of business-coverage, including commercial property, general liability, and business income insurance. Every business needs these three types of coverage, and many businesses need additional coverage beyond that which is in a BOP.
BOP: Commercial Property, Business Liability, and Income Insurance
Commercial property insurance provides coverage for the infrastructure and physical property of your business. This type of coverage applies to equipment, like computers, electronics, tools, machinery, furniture, and accounts receivable. In the event of damage to your physical property, a BOP policy kicks in to help your business pay for the expenses.
General liability insurance kicks in to protect your business to cover damage claims. It covers claims of slander, advertising mistakes, bodily injury, and property damage. For example, if one of your employees accidentally drops hot soup on a customer, general liability insurance covers the expenses associated with damages awarded to the claimant.
The third type of coverage provided in a BOP is business income insurance. This type of insurance provides financial assistance to your business in the event of property damage. For example, if a car crashes through your office wall, it covers the rental cost for a temporary office.
Other Commercial Insurance: Auto, Workers Comp, and Cyber Liability
Apart from a BOP, your business may need coverage specifically catered to your commercial activity. Many insurance providers offer niche coverage options for businesses with specific needs. But, most providers offer businesses the option to extend their commercial policy with auto, workers compensation, or cyber liability insurance.
Commercial auto coverage is an essential addition to your policy if your business involves working with automobiles. Commercial auto coverage is similar to personal automotive insurance. The difference is it covers multiple vehicles in the event of a breakdown of equipment. It provides liability coverage for business-related auto accidents where injury or damage occurs.
Workers’ compensation insurance covers business expenses associated with lawsuits involving worker-related injuries. Many states legally require businesses to have workers’ compensation insurance if the operation involves construction, manufacturing, or engineering. In the event of a lawsuit, it covers medical expenses and wage loss, damages, and litigation fees for the defense.
More businesses operate digitally, meaning cyber liability insurance is more necessary than ever before. If your business operation involves managing digital assets, such as personal or financial information, cyber liability is essential. If your business’s cybersecurity is breached, compromising digital assets, and damaging digital infrastructure, cyber liability insurance kicks in to cover the expenses associated with the fallout. It can cover the costs associated with lawsuits regarding the compromising of personal information, as well as many other expenses.
Get Help Creating a Policy to Fit Your Business
Every business is different in the coverage it needs – but every business needs to be covered. There are many other forms of business coverage that are not mentioned here, and an associate can help you create a policy to fit your business needs. Talk to a Leliaert Insurance associate today for expert help in creating the right commercial insurance plan for your business.