Running a successful business takes time, money, and energy. If you own a small business, you should do all it takes to protect your investment and increase revenue. Commercial insurance, also known as business insurance, can protect your enterprise from costly perils like lawsuits, property damage, theft, and injuries. You can purchase various variants of commercial insurance, which cover financial losses emanating from multiple situations. In general, commercial insurance protects against standard business risks, including:

  • Property damage and theft
  • Employee or customer injury
  • Clients lawsuits
  • Unexpected events

While it doesn't cover every risk, commercial insurance can shield you from many costly circumstances that can ruin your business.

Different Types of Commercial Insurance

There are numerous types of business insurance meant to serve unique needs. Each policy covers a particular peril that your business may face. Here are some of the commercial policies that you should consider:

  • General Liability Insurance – This policy protects your business from liabilities resulting from property damage, bodily injury, reputational harm, copyright infringement, and advertising injury.
  • Errors and Omissions Insurance (E&O) - E&O coverage option protects businesses, their workers, and other professionals from claims of negligent or inadequate work.
  • Business Owner's Policy – Business owner's policy helps protect your company from claims emanating from risks such as theft, fire, and other covered disasters. It also covers claims resulting from business operations, including property damage and bodily injury claims.
  • Commercial Auto Insurance - It covers automobiles used for business purposes like vans, trucks, and cars.
  • Cyber Liability Insurance - It covers financial losses resulting from events like cyber-attacks and data breaches.
  • Workers' Compensation Insurance - It covers lost wages and medical expenses for work-related illnesses and injuries. In most states, businesses with even one employee must carry this policy.
  • Fidelity Bonds- These will compensate your customers if your worker steals from them.

How Does Commercial Insurance Work?

A commercial insurance policy will compensate you if a covered risk causes financial losses. For instance, if someone breaks into your premises and steals your equipment, you can file a claim with your insurer. Your insurer will then investigate and compensate you, provided your claim is genuine.

Commercial Insurance Policy Details

Insurance policies typically include the following details:

  • Premium - Refers to the amount you pay for your insurance coverage.
  • Deductible - Refers to the amount you must pay towards your claim before your insurer compensates you.
  • Coverages and exclusions - The coverage section outlines what's covered by your policy. The exclusions section sets out what's not covered.
  • Policy limits – This is the total amount that your policy will pay. Usually, an aggregate limit (limit per the policy's lifetime) and per occurrence limit (limit per claim).

At United Direct Insurance, we can help you get commercial insurance that adequately protects your business. Contact us today to get started!