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What are the Most Common Types of Commercial Insurance?

Commercial insurance is a type of insurance policy aimed at providing liability coverage for general business risk. The need for commercial insurance can vary depending on the company and the nature of the business. The type of commercial insurance you will opt-in for is mostly dependent on the nature of your business.

When looking to insure your company, starting with a basic commercial insurance policy is ok. However, down the line, specialized coverage might be needed based on the uniqueness of your business.

Here are the common types of commercial insurance available.

Commercial Auto Insurance

Any vehicle owned by your business is a work vehicle and should be insured against risk. Commercial Auto Insurance is designed to cover all vehicles registered under your business name. The rate you are charged for Commercial Auto Insurance is dependent on the type of vehicles you possess, the risks associated with the commodities you move, and even the distance you cover on average. You can check the terms of the agreement to see the types of commercial vehicle insurance you are entitled to.

Business Owners Policy

A Business Owners Policy is a type of commercial insurance scheme that packs different types of business insurance into a single unit. The essence of this is to help businesses save money on insurance plan subscription costs. Business Owners Policy is usually affordable and also provides multiple types of commercial insurance.

Before you go for Business Owners Policy, it is advisable to carefully go through the terms of your agreement. The characteristics of your business are what determines if subscribing to a Business Owners Policy is the right scheme for you. You also need to keep in mind that this type of insurance plan doesn’t come with professional liability insurance, auto insurance, and workers’ compensation.

Business Property Insurance

Business Property Insurance is a kind of insurance best subscribed to by service and retail businesses. It is a type of insurance policy designed to protect physical structures and inventory in your business. It takes care of any damages done to your property. Properties such as your documents, machinery, warehouse, office, furniture, or products are fully covered under this plan.

With this plan, you might still need to subscribe to additional property coverage when needed. This is because not all your property is covered by this policy. Income coverage, crime insurance, and builder’s risk insurance are some examples of coverages you are not entitled to with Business Property Insurance. However, they can be bought as an addition.

General Liability Insurance

Running a business comes with a lot of liabilities. Therefore, it is only right to provide some form of general liability insurance for your company. The benefit of General Liability Insurance is that it covers an array of damages and injuries to your business and third parties. In the case, something goes wrong and there is a lawsuit, most of the cost will be covered by liability insurance policies.

Additional insurance coverage which general liability insurance doesn’t offer should also be considered, in case you need more liability coverage for your business. Insurance options such as malpractice insurances, commercial auto insurance, errors and omissions coverage, or even cyber liability can be subscribed for.

Workers’ Compensation

It is only proper that your employees are also included in an insurance plan, as they are also exposed to risks. Worker’s compensation insurance offers coverage for your employees in case they are exposed to dangers on the job. This is a mandatory type of insurance and it is enforced in many federal and state laws.

However, if you are not in a state that mandates Workers Compensation Insurance, you should consider this as it is important. The reason for this is that Worker’s Compensation Insurance gives your workers a sense of relief in case of an accident at work. It can also protect you from a series of lawsuits, and keep the workplace safe.

Factors to Consider When Subscribing to a Commercial Insurance

When subscribing to commercial insurance, consider the agency you want to use and the ones used by your competitors. You will need an agency that is experienced and knowledgeable in commercial insurance.

Also, when you are offered a coverage policy, you need to be sure if it is right for you. If you only need a basic level of coverage, it won’t make sense financially to go for a more complex coverage plan. Business owner’s policy is good for small businesses, and going for a more broad coverage might not be wise. However, a more established organization would have to go for a more broad insurance plan.