Starting a new business is always a risk, but you can protect yourself from a potential financial disaster with the right insurance in place. There are many different types of commercial insurance available, and it can be challenging to know which ones you need. Commercial insurance can protect your business from various risks, and it’s important to choose the right policy for your company.
Commercial Insurance is insurance businesses can purchase to protect themselves from losses financially. Commercial insurance policies can be customized to specific risks, such as property damage, liability, or product liability.
Here are five types of commercial insurance that every new business should consider:
1. Property Insurance
This type of insurance protects your business property from damage or theft. It’s essential to have property insurance if you own any equipment or inventory essential to your business.
For example, if you operate a retail business, property insurance will help protect your stock from damage or theft. If you run a construction company, property insurance will help cover the cost of repairing or replacing any equipment or tools that are damaged or stolen.
Property insurance can also help protect your business from liability claims. If someone is injured on your property, for example, property insurance will help cover the cost of damages.
Vehicle insurance for your commercial fleet of trucks would be considered as a type of property insurance. Since your trucks and cargo are protected against physical loss or damage while the truck is being used for commercial purposes, your property is protected. There are all kinds of different assets that your company can get insurance for.
Other examples of property insurance includes:
- Building insurance: Covers the physical structure of your business premises
- Contents insurance: Covers the contents of your business premises, such as office equipment and furniture
- Stock insurance: Covers the stock of products that you sell
- Equipment breakdown insurance: Covers the cost of repairs or replacement for machinery or equipment that breaks down.
If you own a particularly specialized business with unique assets, be sure to talk to your insurance broker to learn about the best ways of protecting your assets from natural disasters and accidents.
2. Business Interruption Insurance
If your business is interrupted by a natural disaster or some other event, business interruption insurance will help cover the cost of lost income. This type of insurance can help you keep your business running if something happens that causes you to lose money.
Business interruption insurance can also help cover the cost of temporary office space and other expenses incurred while your business is closed. It’s essential to have this type of coverage if your company relies on revenue from its operations.
Without business interruption insurance, you could be forced to close your doors permanently if an unexpected event interrupts your business.
Here are some examples:
- The building you use for business is damaged and must be repaired or replaced
- A fire destroys your inventory or equipment
- You have to close your business temporarily due to a natural disaster
3. Liability Insurance
Liability insurance protects your business from financial damages caused by someone else. If you are sued for negligence, liability insurance will help cover the cost of legal fees and damages.
Liability insurance can also help protect your assets in a lawsuit. It’s important to have this type of coverage if you own a business with significant assets. It can help you avoid financial disaster if you are sued for damages.
Liability insurance is essential for any business that wants to protect itself from potential lawsuits.
Some examples are:
- A customer slips and falls on your property
- Your business is sued for slander or libel
- You accidentally injure someone while conducting business
4. Workers’ Compensation Insurance
Workers’ compensation insurance is required in most states. This type of insurance provides benefits to employees who are injured or become ill due to their job. It can help cover the cost of medical expenses and lost wages.
Workers’ compensation insurance is vital for any business that employs workers. Without it, you could be liable for any injuries or illnesses on the job.
If you’re not sure whether or not you need workers’ compensation insurance, contact your state’s workers’ comp board for more information.
Examples when this would be used:
- An employee is injured on the job
- An employee develops a work-related illness
- An employee is killed on the job
5. Disability insurance
Disability insurance provides benefits to employees who become disabled and cannot work. This type of insurance can help cover the cost of medical expenses and lost wages.
Disability insurance is important for any business that wants to protect itself from potential disability claims. If an employee becomes disabled, disability insurance will help cover the cost of their medical expenses and lost income.
It applies mostly to companies with employees, but some types of coverage are specific to the self-employed.
Here are examples where disability insurance is required:
- An employee or yourself becomes disabled and is unable to work
- An employee or yourself develops a disability as a result of their/your job
- An employee or yourself is injured in a car accident on the way to work
Tips For Choosing the Best Coverage for Your Needs
- Choose a policy with broad coverage to protect yourself from as many risks as possible.
- Look for a policy that includes both general liability and product liability insurance.
- Make sure your policy covers business interruption, property damage, and personal liability.
- Consider adding workers’ compensation and disability insurance to your policy.
- Get a policy that is tailored to your specific business.
- Talk to an insurance agent to find the best policy for your company.
The number of policies you need depends on the size and nature of your business. It’s important to consult with an insurance agent to find the right coverage for your company. However, make sure to choose an insurance company that uses insurance CRM software, because it will give your business added protection.
Commercial insurance can protect your business from various risks, and it’s essential to choose the right policy for your company. Each type of commercial insurance provides different levels of protection for your business. It’s important to choose the policies that best meet your needs. Research your options and talk to an insurance agent to find the right coverage for your business.