Commercial insurance (also called business insurance) is basically an insurance product that safeguards you against any unexpected issues that may affect your commercial activity. Commercial insurance mainly protects both the company owner and their staff from potential risks of unexpected business interruption, injury, and others such risks. Some of these risks include fire, floods, accidents, explosions, and property damage. It is essential for a business to have some form of commercial insurance to protect its assets. In order to be able to get the right type of commercial insurance, however, there are certain criteria that you and your selected commercial insurance broker should consider.
When it comes to commercial insurance, there are three types that you need to know about. These are general liability coverage, commercial general liability coverage, and business interruption coverage. A brief description of each of these is also given below. General Liability Coverage – this includes injuries to an individual that happen to be in the vicinity of your premises. Commercial General Liability Coverage – this provides protection against liabilities for damages incurred by you or your employees that are caused by you or your property. Your commercial general liability coverage will compensate for: damages to an individual’s life or personal property, legal fees, and costs for medical treatment or rehabilitation, physical disability due to an injury.
Business Interruption Coverage – this provides protection in the event that your commercial activities are disrupted for a period of time. This includes natural disasters such as earthquakes, hurricanes, or outbreaks of disease. The commercial insurance that you are purchasing usually covers your interruption coverage in full.
Carrying Commercial Vehicle Insurance – this policy protects your car and the contents of your car when you are in an accident. It covers damage to the car caused by the collision, as well as any damage to the car or the contents of the car caused by vandalism or acts of nature. The commercial insurance that you purchase will also cover your liability if you hit a government or other private property, damage to your customer’s property, or damage to any animal. If there is damage to your car or its contents, some policies may provide you with a theft recovery fee in order to replace your car. This fee is typically based on the current market value of the car or the total retail price of your vehicle.
Workers’ Compensation – this protects you when you are injured or fall ill at work. It is required that employers provide workers’ compensation to their employees who are injured on the job. Common types of workers’ compensation include lost wages, medical expenses, and temporary disability. Property insurance covers damages to a business property that is caused by vandalism, theft, or natural disaster. This insurance usually covers workers’ compensation, but not necessarily.
When you are looking for commercial insurance, you will likely be asked to provide your personal information as well. This is because you are dealing with an important policy that will affect you in many ways. The first thing you need to know is whether or not you have a liability policy. Liability covers damage that you cause to another person or business property. This means that if you are at fault in an accident that involves injury or damage to another person or automobile, your personal policy will cover the expenses and damage. However, your auto insurance agent should be able to help you determine which type of coverage you have in place.
The next thing you need to know is what types of items and businesses you can insure with commercial insurance. If you have a physical business such as a dentist or a dental office, your insurance will likely be provided through a specific type of provider. Usually, this type of provider provides coverage for most types of business property and bodily injury. However, if you are insuring more than one business at a time, you may need to choose a different provider so you can insure each item under separate policies.
As you can see, understanding the details of commercial insurance coverage can be a bit confusing. However, if you want to feel comfortable with your choice of provider, you should take the time to consult with multiple agents and discuss your options. The more informed you are before you make your purchase, the easier it will be to choose the perfect commercial insurance coverage. This will also help you feel comfortable when making your final selection.