Commercial insurance is one of the most important investments a business owner can make. It can be instrumental in protecting a business from potential loss caused by unforeseen and unfortunate circumstances, such as theft, property damage, liability, and workers compensation. We have provided more information below to help you understand commercial insurance a bit better.
Liability insurance covers injuries that you cause to third parties. If someone sues you for personal injuries or property damage, the cost of defending and resolving the suit would be covered by your liability insurance policy. A general liability policy will cover you for common risks, including customer injuries on your premises. More specialized varieties of liability insurance include:
(for doctors, accountants, property agents, architects, attorneys, & other professionals)
Malpractice insurance, or professional liability insurance, pays for losses resulting from injuries to third parties when a professional’s conduct falls below the profession’s standard of care. For example, if a doctor makes a mistake that other doctors of his specialty would not have made, his patient might sue him. A malpractice policy will pay his defense costs and any judgment or settlement. Malpractice insurance is available for doctors, dentists, accountants, real estate agents, architects, attorneys and other professionals.
Commercial automobile policies cover the cars, vans, trucks and trailers used in your business. The coverage will reimburse you if your vehicles are damaged or stolen, or if the driver injures a person or property.
Property insurance pays for losses and damages to real or personal property. A property insurance policy would cover, for example, fire damage to your business. Additional coverage includes, but is not limited to:
Builder’s risk insurance covers buildings while they are being constructed. The policy would cover losses if a storm were to take down the partially constructed building.
Glass insurance covers broken windows and plate glass windows.
Business interruption insurance covers lost income and expenses resulting from property damage or loss. For example, if a fire forces you to close your doors for two months, this insurance would reimburse you for salaries, taxes, rents, and net profits that would have been earned during the two month period.
Crime insurance covers theft, burglary, and robbery of money, securities, stock, and fixtures from employees and outsiders.
Workers’ compensation insurance covers you for an employee’s on-the-job injuries. Businesses with employees are required by various state laws to carry some type of workers’ compensation insurance. In most cases, workers’ compensation laws prohibit the employee from bringing a negligence lawsuit against an employer for work-related injuries.