Essential Commercial Insurance Coverage for Growing Enterprises
American entrepreneurship drives the local and national economy. Every day, hundreds of new companies launch across the nation. For them, commercial insurance is mandatory for protecting their assets and generating growth.
With all the options commercial insurance agents provide, knowing which kinds of policies are required can be challenging. This post reveals the main forms of commercial insurance a new business absolutely must have.
General Liability Insurance
General liability insurance is the bedrock of any business’s protection plan. It safeguards the owner from third-party claims of property damage and bodily injury, as well as damages from advertising, slander, and other personal injuries.
Most general liability insurance policies take care of legal fees and settlements. If your business has a physical address apart from your home, general liability insurance is a must-have.
Commercial Property Insurance
If you own or rent the building where your business is housed or own business-related equipment, commercial property insurance covers repairs and replacement costs. In addition to damage to your building’s structure, commercial property insurance may also cover furniture, computer equipment, machinery, and any other physical assets you own.
Workers Compensation Insurance
Most U.S. states require businesses to have worker’s comp insurance in place. It allows you and your employees to recover from injuries or illnesses that are directly work-related.
Workers comp pays for medical expenses, physical therapy, and disability benefits if necessary. It may also compensate for lost wages when workers have to take time off to recuperate.
Auto Insurance
If your small business owns an automotive fleet to take on the road, commercial auto insurance can cover damages from accidents your employees are responsible for. As with worker’s comp, many states in the U.S. require companies to take out auto insurance for their company cars if they have them.
Professional Liability Insurance
Also known as errors and omissions (E&O) insurance, professional liability coverage compensates a business owner when a customer or client believes they’ve made a mistake. Even if the error didn’t result in a substantial financial loss, a customer may still sue you for other forms of injury. PLI protects you from damages arising from negligence, copyright infringement, intellectual property damages, misrepresentation, or bad advice.
Other Kinds of Commercial Insurance Coverage for Small Businesses
The above forms of insurance are essential for almost any business. Other kinds of insurance that your commercial insurance agency might offer include:
Cyber insurance for losses caused by data breaches or identity theft
Business interruption insurance in case you need to shut down
Crime insurance covering damages from theft, burglary, robbery, or vandalism
Inland marine insurance for losses or damage committed in transit or warehouse storage
Your commercial insurance agent may have other options that cover more specific needs your business may have.
Protect Your Business for Future Growth
Launching a small business takes a considerable investment of time, resources, and money. Commercial business insurance safeguards that investment and gives your company the opportunity to succeed and thrive for years to come.t investment and gives your company the opportunity to succeed and thrive for years to come.