The Top 5 Things to Consider When Choosing Commercial Insurance

Thursday, May 31, 2018

There are many responsibilities associated with owning a company. While creating a useful product and being fair to your loyal customers is one aspect, you also need to guarantee that your workers and your business will be covered even if you are no longer able to provide the coverage yourself.


What is Commercial Insurance?

You have insurance to help protect your home and your vehicle. You also have life insurance that provides you with some resources your family will need in the event of your death. If you are a business owner, you can take out an insurance policy to help cover your company’s assets. This type of plan is known as commercial insurance.

Commercial Insurance is a type of insurance policy that is designed to help cover businesses. This type of insurance can help business owners and their employees from covered perils. There are several different types of commercial insurance plans available, and since no two businesses alike, there are various policy options for company owners to consider.


Why is Commercial Insurance Important to Have?

Commercial Insurance is essential for business owners whether they own a small business or a large corporation. This type of policy can help  you with various issues such as property damage, theft, liability charges and employees injured while on the job.

When you take out the right type of Commercial Insurance plan, you can quickly recover from a loss. If you experience a fire or someone hurts themselves on your premises without this type of coverage, you may end up losing everything you have worked so hard to build up.


The 3 Main Types of Commercial Insurance

There are three main types of Commercial Insurance; Liability, Property, and Worker’s Compensation. It is crucial that all business owners have at least one if not all three, of these insurance plans.


Liability Insurance

Liability insurance will provide you some protection from damages that your company causes to another party. It can include defective products or an accident that occurred to a visitor at your business location. It will cover the cost of any personal injury or property damage lawsuits you may endure.

Liability insurance can help your company avoid bankruptcy if there is ever a lawsuit placed against you.


Property Insurance

Property insurance offers coverage for damage to your property due to fire or flooding. There are also policies that will cover costs associated with damage due to theft or vandalism.

To find out more about what a specific commercial property insurance policy covers, be sure to discuss the details with your agent before making a final decision.


Worker’s Compensation

Worker’s Compensation helps your employees if they become injured while on the job. It will also help you, the business owner, from any lawsuit that could be filed by an injured worker.

While all three types of coverage are important, Worker’s Compensation is often viewed as the most important because it secures good faith between the employer and the employee.


The 5 Things You Should Think About When Buying a Commercial Insurance Policy

Your company will help to shape the financial future for yourself and your family for generations to come. Therefore, you should do what is needed to help protect it, starting with a quality Commercial Insurance policy. Here are some things to consider when choosing a good plan for your business.


  1. Have the Right Coverage for Your Business

There are so many different types of companies out there, and that’s why there are different coverage options for business owners who want to take out an insurance policy.

For example, if you own a warehouse that deals with hazardous material, for example, you will need to focus on Liability and Worker’s Compensation insurance more than perhaps a restaurant or a company that only deals with finances.

  1. Consider the Size of Your Business

It’s important to find coverage that will match the size of your business. If you own a small business with fewer than 100 employees, you will want to take out a standard small business policy, also known as a BOP or Business Owners Policy. This option allows you to affordably insure your business without paying for coverage you don’t need.

At the same time, large businesses often require additional coverage that a small business policy cannot provide.


  1. Does Your Company Use Vehicles for Business Purposes?

If you use a company car to make deliveries or visit clients, you should have a Commercial Auto Insurance policy. Commercial auto insurance helps cover the costs of any work-related loss that a personal car insurance policy may not cover.


  1. Do Customers Visit Your Place of Business?

If customers visit your place of business, whether it is an office building, retail store, or warehouse, you need liability coverage. This type of insurance coverage acts for your company if a customer becomes injured on your property. It can pay for medical benefits for the customer if needed and pay for any additional legal fees that you may incur.


  1. Make Sure Your Policy is Always Up to Date

The rules for Commercial Insurance, as well as what is available from each company, can change from one year to the next. At the same time, your needs as a business owner can also vary, which means that you may need to take out additinal coverage for your investment.

Always review your commercial insurance plan with your agent annually to find out if any changes need to be made. You don’t want to wait until you must file a claim to find out that you don’t have adequate insurance or learn that you have missed out on a special discount.

To learn more about Commercial Insurance Plans, contact our team at at (877)739-9367. Our licensed insurance agents will be happy to answer any questions you have.