Types of Commercial Insurance and Why it’s Important

Your business deserves to be safeguarded, and you deserve to focus on growing your company instead of worrying about what could go wrong. One of the most crucial ways to protect your company is with commercial insurance.

Let’s go over the various types of commercial insurance out there, and why they will benefit you and your company. 

Types of Commercial Insurance

There are various types of commercial insurance based on what industry your business is in. However, the main categories are auto, property, liability, and workers’ compensation.

Let’s look at each of these. 

Auto Insurance

One of the biggest mistakes small business owners make is skipping commercial auto insurance. Many people mistakenly believe that their personal car insurance will cover them if they use their personal car for business, but that isn’t true.

A commercial auto policy protects your company vehicles. It typically also covers your personal car if you use it to do driving related to your business.

If you have a car registered in your company name, most personal car insurance companies will not issue you a policy (unless you are a sole proprietorship).

Commercial auto insurance also covers damage to you, or other cars involved in a collision. It also covers bodily injuries as a result of a collision. 

Be sure to discuss your commercial auto insurance needs with your insurer to make sure you have the right coverage. 

Property Insurance

Commercial property insurance protects your physical business premises as well as everything inside the building.

Many providers even offer coverage for loss of rent. This is necessary to have if you do business in a physical location. 

Liability Insurance

Liability insurance protects you against claims due to injuries or damage to property. This covers legal costs as well as any settlement payouts you are found responsible for. 

As you may know, lawsuits can get extremely pricey. Without liability insurance, you could have to close your doors permanently due to one claim.

Workers’ Compensation Insurance

If you employ any workers, you are required to carry workers’ compensation to cover medical bills and death benefits for your employees.

Again, this policy protects you against lawsuits if any employee is injured or killed at work.

When you have this policy, it will pay for the employee’s lost wages as well as medical bills.  

Benefits of Commercial Insurance

You can already see from the information above why commercial insurance is vital. Now, let’s focus on the key benefits of having it for your business.

Commercial insurance protects all aspects of your business, from the physical location to your employees, and even the vehicles they drive.  

Without commercial insurance, your firm could be on the hook for thousands of dollars, or more, when something unexpected happens. 

Flood damage to your storefront, power outages, car accidents, workplace injuries, and being sued are all terrible experiences to have to go through. They will be 100 times worse without commercial insurance to protect your firm from unplanned costs.

With the right policy, all you pay for is your policy’s deductible. 

Now You Know

There you have it! A detailed look at the types of commercial insurance and why they are a necessary part of being in business. 

Contact us today for a free quote for all your insurance needs.