Commercial insurance – Your business is protected against the costs of liability lawsuits, property damage, and other risks by commercial insurance.
What is business insurance?
Commercial insurance, also known as business insurance, protects your business financially against common risks such as client lawsuits, customer or employee injuries, theft and property damage, and other unforeseen events.
There are two primary commercial insurance types. Commercial property insurance helps pay for property damage or loss incurred by a business. Business liability insurance helps cover the expenses associated with lawsuits filed against your company.
What types of companies require commercial insurance?
Commercial business insurance is beneficial for all small business owners, including independent contractors and freelancers. Accidents, lawsuits, and injuries can occur in any workplace, which is why it is important to obtain protection even if insurance is not mandated by law.
What are the most prevalent commercial insurance types?
Small business owners typically purchase the following commercial insurance policies:
Common risks covered by general liability insurance include customer injuries, customer property damage, and advertising injuries. It is frequently necessary for leases and contracts.
Errors and omissions insurance (E&O), also referred to as professional liability insurance, protects your business from liability claims if you are sued for a missed deadline, negligent act, or mistake that results in a financial loss.
A business owner’s policy (BOP) combines commercial property insurance and general liability coverage into a single policy, which is typically less expensive than purchasing the two separately. A BOP protects your business and property from a variety of risks.
Cyber liability insurance safeguards against the monetary consequences of data breaches and cyberattacks.
Your company-owned commercial vehicles are covered by commercial auto insurance in the event of accidents, injuries, theft, vandalism, and other damages.
Similar to an insurance policy, there are similarities between insurance policies and surety bonds. These bonds can reimburse your clients if one of your employees commits theft against them. They are frequently required of individuals who handle cash and other transactions.
Workers’ compensation insurance protects both your employees and your business from the costs associated with work-related injuries and illnesses.
FAQs about commercial insurance
How do I obtain business insurance?
Communicate with an insurance company or agent, such as one of Insureon’s licensed agents. The agent can discuss insurance options based on your company’s needs and provide premium quotes.
If you already know the type of insurance you require, you can use Insureon’s free online application to receive quotes from top-rated insurers. You can purchase coverage online and receive a certificate of insurance within 24 hours, on average.
Learn more about Financial Insurance Guide.
How do I determine which types of business insurance I need?
Your insurance agent can assist you in determining the type and amount of coverage your business requires based on the nature of your business, the value of its assets, and other factors. You must ensure that your insurance coverage satisfies any requirements imposed by state laws, your clients, or your industry.
Learn more about the types of insurance that you may require.
What is the procedure for filing a claim?
Call your insurance company. They will investigate your claim, determine the extent of the damage, and inform you of the next steps. If your claim is approved, it will be subject to the policy’s deductible and coverage limits.
If you are sued for financial damages that are covered by your insurance, your insurer will likely connect you with an attorney to represent you in court or settle a claim.