The world of commercial insurance can be an unforgiving one. The requirements are sometimes steep and hard to understand and the coverages can be confusing at the best of times. This is why it's important to have an experinenced commercia linsurance broker on your side to guide you through your risks and coverage needs as a commercial business.
What is Commercial Insurance?
Commercial insurance is what protects your business from financial losses incurred because of events that may happen during the normal operation of a company. Whether you're operating a multinational corporation or a small home business you require commercial insurance to protect yourself and your business.
There are numerous types of commercial insurance because each organization is exposed to different risks and has different insurance needs. All business owners should speak with a licensed and experienced business insurance agent or broker to ensure they get the coverage they need.
One of the most important qualities your commercial insurance broker will posses is their ability to listen. A good commercial broker will listen carefully to your description of your business to help them delve into the various areas that you may be exposed to risk. Your coverage requirements can be based on common factors like the size of your business, materials you use and your employees to your exposure to errors and ommissions tyep risks, privacy concerns and cyber threats to your organization.
Here are some of the more common types of insurance coverages you'll find on a commercial policy.
People make mistakes – business owners, employees or suppliers could err, and this can result in a customer or an employee getting hurt. As well, equipment can malfunction. To protect your business from liability risks like these the following coverages can be employed.
- General: Injury to someone on company premises
- Product: Protection in case a product is defective or causes harm
- Professional/Errors and Omissions: Protection in the event you or your business is sued for negligence, or errors, and omissions when you are performing your professional service(s)
Property, Vehicle and Earnings Insurance
Assets and earnings also need to be protected in the case of an emergency or disaster that destroys assets, or the business premises. The following insurance products provide financial protection.
- Commercial Property insurance
- Contents insurance
- Surety Bonds
- Business interruption insurance
- Commercial Vehicle and Fleet insurance
The above insurance policies are self-explanatory however, many business owners do not think about business interruption insurance. This protects them in case the business has to close temporarily and it covers loss of earnings during the closure.
Owners, Partners, Key Employees Insurance
Losing a key person can be disasterous for a business. For this reason, it's not uncommon for business owners to have life insurance on certain individuals in their organization. The following insurance products offer protection for these individuals:
- Life insurance
- Disability insurance
- Critical illness insurance
- Key person insurance
- Directors and officers insurance
Offering your employees a health insurance plan that covers dental benefits and supplemental health plays a big role in recruiting and retaining employees. Although this is not classified as commercial insurance, it does offer personal protection for your employees.
We hope that this article, Commercial Insurance Explained, has given you some insight into what business insurance is, and how important it is for businesses of all sizes. At Armour Insurance, we have helped many businesses with their commercial insurance needs. If you are unsure how to assess your company’s insurance needs, or if you want more information, we invite you to contact us or give us a call to speak with any of our commercial insurance experts: 1-855-475-0959.