This reference guide outlines the different commercial policies, allowing you to quickly compare coverage and determine which insurance plans best fit your needs, so you can focus on growing your business without worrying about the risks.
If you run a business, odds are you will use at least one of the policies mentioned in this list.
Primary Business Insurance Plans
1. General Liability Insurance
Business liability insurance provides broad coverage.
Protects from claims made against damages caused during business operations.
Protects property rented by your business, medical claims and injuries.
If a customer slips and falls in your store and sues your business for medical expenses and lost wages, general liability insurance can help cover the costs of the lawsuit.
Without general liability insurance, it is going to be harder to get clients and grow your business.
Protects from claims brought against damages caused to others.
Business liability insurance does not cover damages made within your company.
2. Commercial Property Insurance
Real Estate Protection
If you own or lease real estate or equipment, Commercial Property Insurance protects your investments from catastrophic events like fires and storms.
You should consider this insurance if you run a business from home. Don’t rely on home insurance alone. Business property is not covered by home insurance.
Consider getting separate property insurance for especially valuable property.
If renting, you will need renters insurance to protect you from damage caused by tenants.
In the event a fire or flood damages your store and destroys your inventory, property insurance can help cover the costs of repairing or replacing the damaged property.
3. Commercial Auto Insurance
Company Vehicle Protection
The protection of commercial auto insurance is limited to company vehicles used on a daily basis.
Suppose you own a catering business and use your company van to deliver food to clients.
One day, while on the way to a delivery, you get into an accident with another car. Fortunately, no one is injured, but both vehicles are badly damaged.
Without commercial auto insurance, you would be responsible for paying for the repairs to both vehicles out of pocket.
However, if you have commercial auto insurance, it can help cover the costs of repairing or replacing your vehicle and any damages caused to the other vehicle involved in the accident.
4. Workers’ Compensation Insurance
Employee Protection
Consider getting Workers’ Compensation Insurance if you have employees and you want protection from claims made against damages caused to employees.
Many states make workers comp insurance an essential requirement to having employees in the first place.
Let’s say an employee is injured while working on a construction site, workers’ compensation insurance can help cover the costs of medical treatment and lost wages while the employee recovers.
5. Professional Liability Insurance
Protects The Services You Provide
If you provide specialized services, adding professional liability insurance protects you from claims made against damages caused to clients.
You risk losing your business without this policy.
For instance, if a client sues your business for damages resulting from a mistake made in a consulting project, professional liability insurance can help cover the costs of the lawsuit.
6. Product Liability Insurance
Protects The Products You Provide
If you provide a product, you need to get product liability insurance if you want protection made by claims made against damages caused by the quality or function of what you sell.
7. Business Owner’s Policy
Package Deal
This insurance is a package customized for your business.
Most insurance providers offer Business Owner Policy bundles or BOP’s.
These allow you to save money by combining the types of insurance you need.
8. Commercial Umbrella Insurance
Extra Protection
Commercial Umbrella Insurance gives you extra coverage over incidents not fully insured by the other insurance policies you own.
Suppose you own a catering business and use your company van to deliver food to clients.
One day, while on the way to a delivery, you get into an accident with another car.
Fortunately, no one is injured, but both vehicles are badly damaged.
Without commercial auto insurance, you would be responsible for paying for the repairs to both vehicles out of pocket.
However, if you have commercial auto insurance, it can help cover the costs of repairing or replacing your vehicle and any damages caused to the other vehicle involved in the accident.
9. Cyber Liability insurance
Online Businesses and Virtual Property Protection
Doing business virtually using the internet comes with a risk of hacks and data breaches.
Protect yourself from claims made against damages caused by data leaks.
10. Business Crime Insurance
Protection from Criminal Mischief
Property insurance does not cover damages caused by criminal activity like losses due to fraud and theft.
Crime Insurance allows you to get protection for specific crimes which may apply to you.
11. Equipment Breakdown Insurance
Equipment and Machinery Protection
It’s important to protect equipment essential to the operation of your business.
Equipment Breakdown Insurance can be purchased on its own or used in a bundle to supplement a policy you already have for your company.
This insurance covers claims made against damages caused by equipment failure.
Supplementary Insurance Policies
The following insurance plans can only be added to an existing policy:
12. Accounts Receivable Insurance
If you lose the ability to bill clients due to lost or damaged receipts or other billing data, Accounts Receivable Insurance gives you an added layer of protection and mitigates the financial losses of such an event.
13. Business Interruption insurance
Business Income insurance, or business interruption insurance, protects your company from losses stemming from temporary closures due to natural disasters and similar events.
For example, if your business is forced to close temporarily due to a hurricane or other natural disaster, business interruption insurance can help cover the costs of lost income and expenses during the closure.
14. Business Crime Insurance and Equipment Breakdown Insurance
Although you have the option of getting business crime insurance or equipment breakdown insurance by themselves, you can also choose to use them as add-ons to supplement an existing policy you own.
In Conclusion…
The goal is to get maximum coverage and protection at a minimal cost to your company.
In life, it is impossible to completely avoid risk.
Thankfully insurance policies, like those listed, are available to help you further reduce your risk for common situations you may encounter depending on your business model and location.
Investing in business insurance may seem like an added expense, but it’s an investment in the long-term success and security of your business.
Don’t wait until it’s too late. Take action now and protect your assets before anything happens.
