Business owners can protect their business assets, finances, and employees from multiple risks with commercial insurance. However, there are different types of commercial insurance policies depending on the type of business venture. This post highlights the most common types of policies availed by a commercial insurance agent.
General Liability Insurance
You can protect your business from liability lawsuits using general liability insurance. Usually, you or your employees may get sued for personal injury and damages. For instance, a customer may have a slip and fall accident, or your employee may damage client property during a work-related task. Besides, your business may cause advertising injury if it defames another party. The firm may also face copyright infringement or reputational harm lawsuits. Thus, a commercial insurance agent will recommend a general liability policy to cover the cost of property damage, medical expenses, legal fees, and claim settlements.
Property insurance protects commercial buildings and contents. Ordinarily, the insurance covers business buildings such as offices, shops, warehouses, and factories. Also, it includes building contents like inventory, furniture, equipment, and machines. Suppose an insured event such as fire, theft, or a natural phenomenon occurs, the business may suffer damages and loss of buildings and property. Therefore, property insurance caters to the cost of replacement, renovations, and rebuilding. However, your commercial insurance agent will clarify whether the policy is for named-peril or open peril coverage.
Business Interruption Insurance
Businesses experience interruptions when an insured peril occurs. For instance, a company may have to close operations due to hacking, fire, or floods. Such incidences will translate into business closure and employees' downtime, leading to lost income. With a business interruption policy, the insurer replaces the money that the business loses during the incident. Also, the insurer may cater to the cost of relocating to an alternative temporary location.
Workers' Compensation Insurance
A commercial insurance agent will also help your business secure workers' comp. This insurance policy is mandatory in many states for any company that has employees. Essentially, workers' comp insurance ensures that workers get compensation for injuries and illness sustained at the workplace regardless of who is at fault. For instance, a worker may experience a fall accident, an ailment due to exposure to allergens, or a fatality. In this case, worker's comp pays for medical expenses, lost incomes, disability benefits, funeral expenses, and vocational training. This way, the employer avoids liability lawsuits.
Commercial Auto Insurance
Vehicles owned or leased for business use must have commercial auto insurance. This coverage protects your business and drivers from liability associated with a car accident. For instance, if your driver causes an accident while driving a business vehicle, the auto insurance policy would pay for damages and injuries sustained by the other party. Commercial auto insurance may include collision, compressive, liability, insured, and underinsured policies. Check with your commercial auto insurance agent to ensure you are adequately insured.
The listed commercial insurance policies are worth purchasing for your business. Engage a commercial insurance agent to assess your risks and secure necessary coverage.
For more information, reach out to a company such as United Counties Insurance Group.