As a business owner, you might ask yourself, “What is commercial insurance, anyway?”
Think about it this way: a business takes a lot of time, energy, and money to run successfully, and the business owner wants to protect that investment. Commercial insurance (also called business insurance) is a practical way to achieve this goal. Business owners purchase insurance policies which can, in turn, compensate them for financial losses arising out of certain events.
That’s a broad definition, of course. Different insurance policies can apply to different types of events and under different circumstances. Generally, commercial insurance is designed to protect a business from common risks, or liabilities, including…
It won’t protect a business against everything, but Commerical Insurance can be a lifesaver in (potentially) expensive situations.
Your business experiences a covered event – someone breaks in to your office and steals a bunch of laptops, for example. You file a claim with your commercial-insurance provider. They investigate the claim, assess the damage, and then offer you the funds to buy new laptops and replace the window that the burglar smashed.
Other claims might be a bit more complex. A liability claim, for example, often involves your business being sued. In these situations, someone – it could be a customer, client, or unrelated third party – believes your business is liable for causing them financial damage and wants compensation from you.
If you’re sued for an event covered by commercial insurance, your insurance provider will probably provide an attorney to take charge of your legal defense and either defend your case in court or offer to settle with the plaintiff. The costs associated with this, including the attorney’s fees, the court costs, and the settlement or judgment, can be paid for by the insurance provider – up to policy limits, and not including the deductible.
Every insurance policy comes with its share of fine print, and commercial liability insurance is no different. Any policy you purchase will probably include…
Pay attention to the details of your policy so you know what you’re getting. Talk to your insurance agent if you have any questions.
There are many types of commercial insurance, but these are some of the most common policies you’ll come across:
In most cases, the only commercial insurance a business is legally required to have is Workers’ Compensation Insurance – and typically only if it’s an employer.
However, a business may be contractually required to carry certain policies. If you lease a building or office space, for example, your landlord will probably want you to have General Liability Insurance. If you take on a large business client, they’ll likely ask that you have Professional Liability Insurance.
Having insurance coverage is often just a part of doing business in today’s world.
Call one of our experienced agents today for a free consultation.
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