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7 Types Of Commercial Insurance You Need To Know About

Tuesday, November 16, 2021

Owning a business often requires wearing multiple hats. Getting a company from the planning stage to an actual profit status is no small feat, especially during a pandemic. You know that you need commercial business insurance but, let’s face it, understanding how to cover all of the risks involved is not in your wheelhouse. You may need specialized policies to cover liability, theft, employees, and equipment. Every company is unique, and working with your insurance agent to discuss details is essential.

What Is Commercial Insurance?

If you own a business, you need Commercial Insurance. The types of commercial insurance policies required are different from individual homeowners or car insurance. Commercial Insurance covers you for potential losses like theft, property damage, liabilities, and employee risks. It takes much more than a simple blanket policy to protect your company. The best way to ensure you are adequately covered is to work one-on-one with your commercial insurance company agent.

Understanding Your Commercial Insurance Needs

Purchasing a policy against fire, theft, and catastrophic loss is just one part of your actual commercial insurance needs. You will need both general and professional liability insurance to protect yourself and the physical location of your business. 

Here are 7 types of commercial insurance policies you may require: 

types of commercial insurance

1-General Liability

General Liability Insurance will cover potential medical costs and associated legal fees of accidents in the workplace. This policy also covers mistakes like libel and copyright infringement.

2-Property Insurance

Property Insurance provides financial compensation in the event of a property loss so that the business can continue to operate with as little disruption as possible. 

3-Business Interruption Insurance

This insurance covers financial loss if the business suffers from a disaster. A system-wide power outage could impact food storage, or a water main repair could cut off traffic access, impeding your ability to conduct business. This type of protection would cover your loss of income for the duration of the interruption. 

4-Workers Compensation Insurance

Your state will likely require minimum coverage for worker’s compensation. There are also many decisions to make about medical responsibilities and other employee liabilities. Again, a thorough discussion with your agent at Independent Insurance Associates will help clear up any confusion on this subject. 

types of commercial insurance

5-Cyber Liability

If you gather sensitive financial or personal information from online customers, you are inviting risk. This type of coverage will protect you and your customers in the event of identity theft or a data breach.

6-Management Liability Insurance (D&O)

Also known as Directors & Officers Liability Insurance, Management Liability Insurance is meant to cover lawsuit costs and damages. It can help reimburse a business for the legal fees, settlements, and other costs of defending directors against a lawsuit.

7-Errors & Omission Insurance (E&O)

E&O Insurance is also known as Professional Liability Insurance. For service businesses like legal, financial, real estate, or architectural designs, this policy helps cover any errors or omissions resulting in a lawsuit. 

At Independent Insurance Associates, we understand that most business owners are overwhelmed when choosing insurance coverage. There are many aspects of your company that may require a tailored Commercial Insurance Policy. By partnering with several major commercial insurance companies, we offer excellent coverage at an affordable price. 

We welcome the opportunity to review your current business policy and encourage you to contact us today to discuss your Commercial Insurance needs.