How Reliable Commercial Insurance Agents Reduce Risk and Stress

As a business owner, you know that securing the right insurance coverage is an indispensable part of protecting what you’ve worked so hard to build. As your company evolves, your insurance coverage should, too. However, given the everyday challenges that come with running a business, it can be stressful to constantly look for liabilities. 

When you have a reliable commercial insurance agent by your side, you can minimize your company’s risk and find peace of mind. Take a look at some of the ways the right commercial insurance agent can make a difference in your business and your life.

They Spot Risks You May Have Missed

Even the most vigilant business owner can’t spot every possible risk. When you work with a local commercial insurance agency, you’ll know that your agent is actively monitoring for potential threats to your company.

A good commercial insurance agent understands the importance of being proactive, so they will look for coverage gaps and work with you to mitigate risks. For example, if your company is adopting an online record system, your agent might recommend cyber liability insurance to protect you in the event of a data breach.

They Assist With Regulatory Compliance

Some industries are more highly regulated than others. If you’re in a sector with strict insurance requirements, your agent can help you choose a policy that satisfies all regulations. As those regulations change, they may recommend policy changes or additions that keep you covered.

They Help You Understand Your Policy

Unless you’re in the insurance industry, the language used in policies can be difficult to understand. Some business owners rush into choosing policies or just select one based on an insurer’s recommendation. However, if they don’t have a comprehensive grasp of what their policy covers (and doesn’t cover), they may find themselves constantly worried.

A reliable commercial insurance agent won’t pressure you into a specific policy or rush you into making a decision. Instead, they’ll discuss coverage in plain language, answer questions, and do what they can to make sure you thoroughly understand your coverage. 

They Assist You Through the Claims Process

Most business owners hope that they’ll never have to actually file a claim. However, when you have an experienced commercial insurance agent, you know that you won’t have to navigate the claims process alone. Your agent can offer valuable guidance at each stage of the process:

• Understanding whether your loss is covered

• Helping you gather documentation

• Putting together your claim

• Facilitating communication between you and the insurer

If necessary, your agent can also advocate for you. While there’s no way to guarantee that the insurance company will offer you fair compensation for losses, having the help of a skilled agent can greatly increase your chances.

Never Underestimate the Importance of a Reliable Insurance Agent

To some people, buying insurance is just a transaction. However, when you have the right commercial insurance agent, purchasing coverage is so much more. In addition to getting an insurance policy, you’re also gaining a dedicated ally who is committed to your long-term success.

Key Coverage Areas a Commercial Insurance Agent Can Explain

No matter the size of your business, you need commercial insurance — also known as business insurance — to manage risks and safeguard your business from financial loss.

Your business is surrounded by risks that can lead to financial losses from property damage, liability claims, operational disruptions, and employee accidents and injuries. Coverage from a commercial insurance agency can keep these incidents from leading to large financial outlays or potential business failure.

A commercial insurance agent can explain the key areas of coverage essential for all businesses, big and small.

What Is Commercial Insurance?

Commercial insurance acts as a contract between your business and an insurance company. You pay a premium, and in exchange, the insurer assumes the risk and liability for certain covered events that could result in a loss for your business. If the accident or incident happens, a commercial insurance agent can help you file your claim. If it is covered, your insurer pays the claim.

Key Commercial Insurance Coverage Areas

Whether your business is large or small, commercial insurance is crucial to safeguard your company from the financial costs of claims for property damage, liability, and employee-related incidents.

A commercial insurance agent is your trusted advisor to explain complex insurance terms and tailor your coverage to your specific needs.

The key coverage areas in every business are:

Commercial Property Insurance

This type of commercial insurance can safeguard the physical assets and related financial gains of your business. These include:

• The Building: Structure, installed fixtures, and machinery

• Business Property: Contents, such as furniture, inventory, and equipment

• Business Interruption: Lost income and temporary closure expenses

Commercial property insurance can guard against loss or damage from such events as fire, theft, and natural disasters.

Commercial General Liability Insurance

Commercial general liability insurance can help guard your company against financial loss from legal claims filed by someone outside your business for:

• Bodily injury

• Property damage

• Personal and advertising injury

Your coverage may pay the costs for someone who was injured at your business, damage that your operations or an employee caused to someone’s property, and liability for such offenses as libel, slander, and copyright infringement. 

Workers’ Compensation

Most states require businesses to carry workers’ comp insurance to cover employees who suffer work-related injuries or illnesses.

Workers’ comp can pay for the medical costs and lost wages of employees who agree not to pursue a claim against the company. This compensates the employee and safeguards the company against lawsuits from injured or ill employees.

Let a Commercial Insurance Agent Explain Coverages to You

Talking to a commercial insurance agent can go a long way in helping you understand the essential coverage areas for businesses: commercial property insurance, commercial general liability insurance, and workers’ compensation. 

A commercial insurance agent can also assess your special risks, compare coverage options and pricing, and customize policies for you.

If you need additional commercial insurance, you can talk to your agent about commercial auto insurance, professional liability insurance, and commercial umbrella insurance.

Small Business Owner’s Guide to Risk Protection

Only large, multi-national corporations must worry about risk management, right? Wrong. You might run a small business, but its size doesn’t mean you won’t face hazards that could permanently close its doors.

From accidents to natural disasters to lawsuits, risks lurk around every corner, inside and outside your company. However, you can help safeguard your business with the right commercial insurance.

What Is Commercial Insurance?

Commercial insurance, also known as business insurance, provides you, your employees, and your company with a financial safeguard against risks and potential losses. 

The risks can come from outside and within your business and include property damage from a flood, a liability claim for an injury, or a criminal organization hacking customer and employee files. Commercial insurance can provide a financial safeguard from the impact of these and other unexpected events.

Risk Management for Small Businesses

As a small business owner, you face many risks. Your business structure — sole proprietor, limited liability partnership, or limited liability company — can safeguard you against some risks. However, you need commercial insurance to feel comfortable that your risks are covered.

Consider taking these three steps toward risk management:

1. Identify and assess potential risks

2. Implement preventive measures

3. Insure against risks and hazards

Establishing this risk management plan can allow you to track and measure your progress in mitigating the risks to your business.

Potential Risks Your Business May Face

Whether they come from within or without, risks can keep your business from running smoothly and growing. Here are the types of risks you may be up against daily in your business:

• Financial

• Operational

• Strategic

• Compliance

• Legal

• Human resources

• Technological

• Environmental

• Reputational

You must develop a risk management plan, put internal controls in place, create a business continuity plan, inspect and maintain your property and products, and engage your employees in risk management. A commercial insurance agent can help you build the right insurance coverage into your plan.

Types of Commercial Insurance

The federal government requires you to purchase insurance for workers’ compensation, unemployment, and disability. Depending on the state you operate in, you might have other requirements for insurance, so check your state’s website to keep your business in compliance.

You can call a commercial insurance agency to find additional coverages you might need.

Commercial General Liability

This coverage can protect your business against a claim for property damage or bodily injury.

Commercial Property Insurance

A policy that can safeguard your inventory, buildings, and other commercial property from loss or damage.

Commercial Auto Insurance

Your company may be covered if a company vehicle is damaged or causes injury or damage.

Professional  Liability

The coverage may safeguard your business against faulty work, claims of negligence, unlawful employment practices, and mismanagement of company assets.

Crime Insurance

Your company may be able to recoup losses from theft, fraud, employee dishonesty, or other crimes.

Business Owners Policy

A customized policy that includes commercial property insurance, commercial general liability insurance, and other commercial insurance you might need.

Clarify the Best Risk Protection Measures With an Insurance Professional

A discussion with a commercial insurance agent can help you match the right coverage to the risks of your business.

Cyber Liability Insurance Essentials for Modern Businesses

Cyber liability coverage is a relatively new category of commercial insurance. This type of policy was created in response to the growing concern about data breaches, ransomware, and phishing attacks. These attacks can disrupt your business or potentially force you to close your doors permanently. Here’s how the right cyber policy can help. 

What Is Cyber Liability Commercial Insurance?

Cyber liability coverage helps you manage financial losses from cyber incidents. This type of commercial coverage may cover costs like legal fees, customer notifications, and data recovery. 

While these policies vary, they typically address both first-party and third-party losses. A commercial insurance agency can tailor the scope of coverage to fit your needs. 

Why You Need Coverage

Every business that handles digital data faces cyber risks. Don’t think that your company is too large (or too small) to be a target for digital criminals. Small businesses tend to be especially vulnerable because their cybersecurity measures are not as robust.

A good cyber liability insurance policy can help you bounce back should you become the victim of an attack. The policy can cover your essential expenses and provide a critical safety net. 

Key Protection Areas

Cyber liability policies typically include several protections, such as:

Data Breach Response

Data breach response costs can pay for things such as notifying affected customers and providing credit monitoring to anyone whose data has been compromised. 

Legal Fees

If you are sued or you face regulatory fines due to the breach, a liability policy could help cover these costs. However, it’s important to ensure your coverage limits are high enough to cover the potential expenses you incur. Talk to an experienced insurance agent to discuss how high you should set your policy limits. Make sure to consider other factors, such as your deductible amount, as well as any incidents that are excluded. 

Ransomware Payments

Ransomware attacks occur when hackers hijack your data and hold it hostage for an exorbitant amount of money. Some policies may cover the ransomware payments necessary to get your data back. This type of coverage isn’t standard. Ask your agent if ransomware payments are an available add-on. 

Business Disruptions

A single breach can lead to tens of thousands in lost income during system downtime. Estimate how much a company-wide outage would cost you and how long it would take you to get your systems back online. Use these estimates to choose an appropriate business disruption coverage amount. 

How to Choose the Right Policy

Working with an experienced commercial insurance agency will help you identify the right plan for your business. Discuss everything from your daily revenue to how long it will take you to recover from a massive breach. Compare at least a few different policies, and be mindful of exclusions to avoid gaps. 

Staying Ahead of Cyber Threats

A commercial insurance agent can help you identify the right policy and adequate coverage amounts for your business. Don’t wait until disaster strikes. Take advantage of cyber liability insurance and protect the future of your company. 

Understanding Business Interruption Coverage With a Commercial Insurance Agency

Owning a business comes with some pretty great rewards, but it’s not without its challenges. When you’re the one at the helm, you’re in charge of a seemingly never-ending array of responsibilities, from daily operations to employee management to finances. 

Naturally, one of the scariest prospects is the unexpected: an equipment breakdown, a severe weather event, or some other unforeseen disaster that forces you to close your doors for who knows how long. 

Beyond immediate issues like property damage, being unable to operate for an extended period can absolutely threaten your business’s survival — and that’s exactly why business interruption coverage exists. 

There’s Commercial Insurance for When My Business Can’t Operate? 

Yes! It may seem a little far-fetched, but if you think about it, commercial insurance is generally geared toward problems businesses are likely to face. 

Amid more classic considerations like theft, fires, or floods (which overlap here), business interruption insurance, at its core, offers a potential lifeline when you have to halt operations temporarily, replacing lost income and covering necessary ongoing expenses as you recover. 

Given that “business interruptions” can be many different types of unforeseen or unfortunate events, business interruption coverage isn’t usually sold as a standalone policy. Instead, it’s typically added as part of a broader commercial insurance package, often linked to your commercial property insurance. 

Also, in order to be eligible for coverage, the interruption you’re claiming must stem from direct physical loss or damage covered by an event specifically included in your policy documents. 

What Usually Gets Covered?

When a covered event leads to an unavoidable shutdown, business interruption coverage could get you reimbursed for:

• Lost net income, or the profit your business likely would have earned if operations hadn’t been interrupted (this is usually based on your historical financial records)

• Ongoing operating expenses that you continue to have even when your doors are closed, like rent or mortgage payments, utilities, insurance premiums, and salaries for key employees

• Temporary relocation if you’re able to operate from a different site in the interim while waiting for your main location to be repaired 

• Extra expenses you might incur to expedite reopening or minimize the shutdown period

The specifics of what’s covered, like the maximum payout, the length of time the coverage applies (the “period of restoration”), or any deductibles or waiting periods, all depend on your policy, so make sure to review your policy documents thoroughly.

How to Make the Most of Your Policy to Help Your Business Heal 

Any interruption to your operations can be devastating, especially when you’ve poured your heart and soul into your company and then something terrible comes out of left field. That’s stressful enough — adding the often jargony and complicated task of policy navigation certainly doesn’t help. 

Tasks like determining what constitutes a “covered peril,” accurately calculating lost income, documenting ongoing expenses, and adhering to policy conditions all require careful attention. This is where bringing in a knowledgeable commercial insurance agent can be helpful, especially in terms of getting you the most you can get in order to recover. If you haven’t experienced an interruption to your operations, reaching out to a dedicated commercial insurance agency to review your policies now might set you up to whether the storm should ever happen.

Revolutionize Risk Management With Smart Commercial Insurance

What would it mean to your business to better identify and address risks, reduce claims,  and speed up processing all at a potentially better price? That’s the revolution the digital age promises for risk management with smart commercial insurance.

As the risks to businesses grow more complex, advancing technology is giving the insurance industry the tools it needs to meet new challenges with innovation and flexibility.

A commercial insurance agency can harness the capabilities of artificial intelligence (AI), machine learning, and language learning models (advanced algorithms) to streamline its business. For you and your business, that means improved risk assessments, a more personalized policy, and an enhanced customer experience.

Here’s a closer look at how commercial insurance powered by technology can transform risk management for your business.

What Is Commercial Insurance?

Commercial insurance, which is also known as business insurance, can guard a business against financial loss from risks such as property damage, employee injuries, lawsuits, auto accidents, theft, cyber crimes, and more.

A commercial insurance agent typically uses historical data and time-consuming manual processes to assess risks and determine premiums. However, the rise of AI and related technologies allows an agency to more accurately identify risks and customize a policy to a specific business.

Smart Commercial Insurance

Smart commercial insurance can deliver significant gains to businesses through advanced insurance technology, known across the industry as InsurTech.

Enhanced Risk Assessment

With AI and machine learning, commercial insurers can crunch vast amounts of data faster and more efficiently. The result is a more accurate assessment of risks and better predictions of future risks based on historical data. Real-time monitoring through technology also allows risk managers to recognize potential hazards before they grow into bigger issues. 

Tailored Insurance

A commercial insurance agent who customizes coverage can also offer more personalized policies. A deeper analysis of a company’s operations and risk profiles can help tailor policies for a business. By not paying for unnecessary coverages, a business potentially could save on premiums as well.

Streamlined Claims

The use of advanced technology to handle commercial insurance claims aims to enhance the customer experience and reduce fraud. An agency can use chatbots and virtual assistants to gather information when claims are initiated. It can analyze data faster, reducing the time for responding to claims. AI also can recognize patterns, improving the detection of fraudulent claims.

Challenges remain around data security, the ethical behavior of AI, and regulatory compliance. However, technology and adaptability are helping smart commercial insurance revolutionize risk management for businesses.

The Future of Commercial Insurance Is Now

AI and its related technologies infuse smart commercial insurance with the capacity to reshape risk management for businesses. Innovation, flexibility, adaptability, and customer engagement are leading to better risk assessments, more personalized policies, and improved claim processes.

As more commercial insurance agencies adopt and deploy advanced technology, they can make coverage more seamless for businesses and be more proactive in mitigating risks, adding efficiency and value to a company’s operations.

Proven Strategies to Maximize Your Insurance Benefits

Insurance benefits are meant to protect you, but getting the most out of them often feels like trying to read through dense paperwork filled with loopholes and jargon. To maximize your coverage, though, you need to prepare ahead and take action when needed.

This guide will break down the steps you need to take to reduce costs, streamline claims, and make the most of the protections you’ve already paid for.

Know Your Coverage

Insurance policies are detailed documents, but taking the time to understand them can save you money and avoid unexpected costs. You can start by reviewing your policy documents line by line to identify exactly what’s covered, such as: 

• Medical treatments

• Property repairs

• Business interruptions

• Exclusions

For instance, a health plan may not cover experimental drugs, and home insurance might not cover damage from earthquakes unless you purchase a separate endorsement.

Other key components you need to clarify include:

• Deductibles: The upfront amount you pay before insurance coverage applies

• Copays: Fixed fees for specific services

• Coinsurance: Your percentage of the cost after meeting the deductible

If something isn’t clear, reach out to your commercial insurance agent, talk to their customer service, or visit their website. 

Optimize Coverage Selection

For businesses, choosing the right commercial insurance policies often starts with assessing your business’s unique risks. 

For example, the owner of a retail store may choose to focus more on covering general liability and commercial property to ensure that it is protected against accidents or damage to property, while a tech firm’s owner may invest more in cyber liability coverage to protect against data breaches. 

You can also customize your policies to avoid overpaying for add-ons that may not apply to your business while ensuring you still have coverage in place for high-risk scenarios.

Endorsements are another factor to pay attention to. Endorsements let you fill niche needs without the effort of drafting a whole new agreement. An inflation guard endorsement, for example, increases payout amounts over time to keep up with higher costs, so claims can retain the same value.

Identify gaps in coverage with your insurer to take full advantage of insurance. For instance, if you have a homeowner’s policy that doesn’t cover equipment breakdown, an endorsement can add that to your existing coverage without changing the entire policy.

Use Your Broker’s Expertise

Commercial insurance options can be overwhelming — your policies can vary widely in coverage details and costs. When you partner with a licensed broker who specializes in your industry, you can simplify this process. 

This matters because brokers understand the nuances of commercial insurance coverage and can help you compare options across insurers to find policies that match your business’s specific risks and budget.

Brokers can also negotiate terms and rates, often helping you secure better deals from a commercial insurance agency than you might get independently. 

Take Control of Your Insurance (and Your Peace of Mind)

To maximize your insurance benefits, you’ll need a lot of research and patience to decode policies, advocate for claims, or even adapt to the ever-changing needs of insurers. If you’re new to this, the process can feel tedious, but the payoff is often worth it. You’ll get better financial protection and peace of mind knowing that your future won’t be derailed by life’s uncertainties.

How Professional Commercial Insurance Agents Cover Your Business Risks

As a business owner, the one constant on your mind is risk. It’s a pesky business norm that lurks in every aspect of your business and draws your concern even before you open your doors for your first customer.

Whether someone from outside your business causes harm, an employee suffers an injury, or a natural disaster destroys property, accidents and incidents happen. A commercial insurance policy can help safeguard your business from financial loss.

A commercial insurance agent can help you get commercial general liability insurance, workers’ compensation insurance, commercial property insurance, and a business owner policy to help ease your mind about your business risks.

Here’s how a professional commercial insurance agent covers your business risks.

What Is Commercial Insurance Risk?

Commercial insurance risk is an assessment that an accident or incident will occur that will result in a loss for your business. Actuarial models analyze historical claims data to show how likely an adverse event is to occur. The analysis is specific to your business and tells how much the accident or incident is likely to cost.

If the accident or incident happens, you file a claim with your insurer and the insurer pays on the claim if the accident or incident was a covered event.

How a Commercial Insurance Agent Covers Your Business Risks

No matter the size of your business, you need business insurance. A commercial insurance agency can properly cover the risks in your business. Here’s what to expect from your professional commercial insurance agent:

Assessing Risks

Your commercial insurance agent will come to your business and assess your operations for the potential risks of theft, fire, accidents, natural disasters, or professional liability, depending on your industry.

Customizing Policies

Your commercial insurance agent will let you know about policies and coverages. Based on the risks identified, your agent will recommend specific policies for general liability, property insurance, workers’ compensation, and business interruption insurance to cover your risks.

Comparing Options

As an independent agent, your commercial insurance agent can compare options from multiple insurance carriers. This can help determine which insurance company can give you the most value — the appropriate coverage at the best price.

Explaining Coverages

A professional commercial insurance agent will take the time to explain any complex insurance terms and conditions in language you can understand instead of the legalese written into policies. Your commercial insurance agent wants you to fully comprehend your policies.

Assisting With Claims

Once the risks are covered and the policies are in place, your commercial insurance agent will help you through the claim process if a covered event occurs. Your agent also will advocate for you with the insurance company.

Reviewing Policies

Your commercial insurance agent will regularly review your insurance policies as your business grows and evolves. As your business changes, your risks change and may require different coverages. A regular review can help keep adequate coverage in place.

Your commercial insurance agent effectively acts as a guide to safeguard your business against financial losses.

Commercial Insurance Can Help Watch Over Your Business

Uncertainty is a part of every business. Working with a commercial insurance agency to prepare for the known risks can help you sleep at night with the knowledge that you’ve properly safeguarded your business from financial ruin.

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.

Top 5 Mistakes Businesses Make With Commercial Insurance

Without question, every business should prioritize getting commercial insurance. This vital safety net can save business owners from financial disaster during vulnerable or unpredictable times.

However, some business owners make critical errors in this regard. Commercial insurance agents repeatedly see many of their clients making the same mistakes. If the agent doesn’t sound the alarm, the following five mistakes could seriously impact a client’s financial health.

1. Being Underinsured

Perhaps the most common error that commercial insurance agents see is underestimating what coverage a business might need. For example, a client may undervalue the value of their property or the scope of their liability. As a result, they may find that their policy comes up short when the unexpected happens.

To avoid underinsurance, business leaders should make regular assessments of their operations and assets. They need to account for a wide range of scenarios and determine the true level of coverage they need.

2. Failing to Review and Update Coverage

Businesses undergo many changes. A company might expand its customer base or develop a new range of products. It may update equipment and machinery to prepare for an expansion. When that happens, company leaders may need to adjust insurance coverage to adapt to these new needs — but many forget to do so.

To ensure your coverage keeps up with your growing company, take time to assess the state of your business at least once a year. Work with your insurance representative to identify coverage gaps or outdated policy terms.

3. Ignoring Business Interruption Coverage

An unexpected event can force a business to pause operations. Fires and natural disasters, for example, can result in extended periods of lost revenue — something that many owners don’t account for in their insurance coverage.

Business interruption insurance can offer a baseline of financial stability in the case of an extended closure. It’s a key add-on that can be the difference between a company’s survival and its extinction. 

4. Prioritizing Low Cost Over Quality

All businesses seek to maintain profitability. They often cut operating expenses to improve their bottom lines. Some businesses select cheaper options for insurance coverage to limit their costs — and often, that limits their coverage.

While it’s reasonable to find opportunities to save money, doing so at the expense of adequate insurance coverage can be a mistake. Work with your commercial insurance agency to form a plan that’s cost-effective but comprehensive.

5. Overlooking or Misunderstanding Exclusions

Some business owners assume they’re insured for certain conditions or items that are actually excluded from their insurance policies. That mistake can be fatal if the worst-case scenario happens. 

Commercial insurance policies can be complicated, but it’s crucial to know what parts of your business are not sufficiently covered in your insurance agreement. Work with your insurance agent to clearly understand the exclusions in your policy. If a vital part of your business is excluded, ask for add-on coverage or other solutions that may protect your finances.

Learn How to Avoid Common Business Insurance Errors

Mistakes are part of life, and no business is perfect. However, these common insurance errors are avoidable and correctable. Work with a commercial insurance agent to make adjustments to your policy for comprehensive coverage and security.

The Truth About Customized Commercial Insurance From Independent Agents

One of the most important aspects of your business plan is your commercial insurance, which guards against the many risks your company faces. But how do you get business insurance without spending too much on the coverage you don’t need or finding out at the wrong time that your one-size-fits-all policy has gaps in coverage?

Consider turning to an independent commercial insurance agency, such as Garrett Insurance. Working with an independent commercial insurance agent can help you find the perfect policy for your business.

Here’s why customized commercial insurance from independent agents is likely your best option.

What Is an Independent Commercial Insurance Agent?

An independent commercial insurance agency works with multiple carriers, allowing its agents to offer flexible options at competitive rates. Independent agents are licensed professionals with an expansive knowledge of business insurance and a broad view of the insurance industry.

This flexibility and experience come together to deliver commercial insurance better tailored to your business than you’d get from a captive agent, who sells the products and services of only one company.

From theft and cybercrime to natural disasters and employee accidents, your company is exposed to a lot of risks. Independent commercial insurance agents are best positioned to provide the strategic advice and customized commercial insurance you need to protect your interests.

Why Choose a Customized Commercial Insurance Plan?

All businesses are unique, even within the same industry. The threats you face may differ from a similar company because you operate in a different region.

A commercial insurance agency can build a custom plan to cover the potential risks of your industry down to those that are specific to your area. In doing so, they can reduce your exposure and save you money.

Types of Commercial Insurance to Consider

Here are some of the most common types of commercial insurance coverages:

General Liability

This broad category of coverage can guard you against financial losses from claims against your business for property damage or bodily injury.

Property Insurance

With property insurance, you can shield the buildings, inventory, and other commercial properties associated with your business against financial loss or damage.

Auto Insurance

A commercial auto insurance policy can cover your business if a company vehicle injures someone, damages property, or gets damaged itself.

Worker’s Compensation

Worker’s compensation insurance can benefit both your employees and your business by covering the medical bills and lost wages of workers injured on the job. Offering these benefits means less likelihood of damaging lawsuits.

Professional Liability

Professional liability insurance can protect your business from claims of negligence, faulty work, mismanagement, and other breaches of professional conduct.

Crime Insurance

This type of insurance can help your business recoup losses resulting from fraud, theft, employee dishonesty, and other criminal actions.

Business Owner’s Policy

With a business owner’s policy, or BOP, you can build a customized commercial insurance policy from among multiple available business insurance coverages.  

Umbrella Insurance

Umbrella insurance can offer additional protection for your business against unexpected events that might exceed your coverage limits.

Your independent commercial insurance agent can put together a package of these coverage types to suit the specific needs of your business.

How to Get a Customized Commercial Insurance Policy

Business insurance can be infinitely complex. Fortunately, you don’t have to spend your valuable time thinking about it. When you work with a commercial insurance agency, your agent can customize a commercial insurance plan for your business while you focus on the important work of running your company.

Commercial Insurance Guide for New Entrepreneurs

As a new entrepreneur, you’re likely excited about getting your business off the ground but also recognize the risks of running your business. You know you need insurance, but you may have questions about the types of commercial insurance you need, how much you need, and where to get it.

An accident, major weather event, theft, or lawsuit could end the dream of your business before it gets well underway. Fortunately, a commercial insurance agency can provide all the insurance your business needs to succeed.

Here is everything you need to know about commercial insurance as a new entrepreneur to safeguard your business against loss or damage.

Understanding What Commercial Insurance Is Required

As a business just starting up, you may be tempted to skip buying insurance, perhaps to save on costs. However, you may be risking more than your business by not buying insurance; you may also be breaking the law.

Legal requirements vary by state. However, many states require that you have worker’s compensation insurance and unemployment insurance.

You may also be required to carry disability insurance and other types of insurance, depending on your industry. If you’re unsure of what your state’s requirements are, getting in touch with a commercial insurance agent can help.

Other Commercial Insurance You May Need

To safeguard both you and your startup, you may need commercial insurance beyond the minimum required by your state. Take a closer look at these common types of commercial insurance:

General Liability

Every business should have general liability insurance. It can cover you against claims for property damage, bodily injury, and medical bills, as well as libel and slander.

Property Insurance

Commercial property insurance can guard your building, inventory, and equipment against loss or damage. This damage may come from fire, smoke, wind, or vandalism.

Auto Insurance

A commercial auto insurance policy can cover your company if a work vehicle causes damage or injury. Auto insurance can also be helpful if a work vehicle is damaged.

Product Liability

If you’re involved in manufacturing, product liability coverage can be beneficial. This coverage can guard against financial losses from a defective product causing an injury.

Professional Liability

Professional liability insurance can be another safeguard for your startup. It covers issues like faulty work, claims of negligence, and poor management of assets.

Crime Insurance

Many new entrepreneurs aren’t aware of crime insurance. With crime insurance, you can recoup losses from fraud, robbery, employee dishonesty, and other crimes.

Commercial Umbrella

The limits of certain liability policies might not cover a claim. Commercial umbrella insurance can extend that limit to cover the difference.

Business Owner’s Policy

A business owner’s policy (BOP) can customize a combination of these common commercial insurance policies into one. This can help provide the coverage you need and potentially save you money.

How to Buy Commercial Insurance

Getting the right insurance doesn’t have to be difficult. To simplify the process, make sure you take these key steps:

• Assess your risks

• Work with a reputable commercial insurance agent

• Shop around for the right insurance at the right price

• Re-evaluate your insurance needs every year

The peace of mind that comes with securing the right coverage is well worth your effort.

Finding the Commercial Insurance You Need

Money often is tight when starting a business, but forgoing commercial insurance could leave you paying for claims against your company out of your pocket. Working with a commercial insurance agent can help you identify the risks your business faces and the commercial insurance you need to cover those risks.

9 Tips to Maximize Your Commercial Insurance Coverage

If your doors are open for business, you need commercial insurance — whether it’s required for your industry or by law. It’s just good business to mitigate risks that could harm your company or even shut your doors.

From product liability lawsuits to vehicle accidents to cyber theft, threats to your business are all around you. But commercial insurance can safeguard your business to keep it operating, thriving, and providing for your employees’ families and your community.

Just like businesses, commercial insurance comes in all shapes and sizes, so it’s important to work with a commercial insurance agency to get the right coverage for your company. Consider these nine tips to know you’re getting the most out of your commercial insurance.

1. Understand Your Property’s Value

To know how much coverage you need and to maximize that coverage, you must know the value of what you have to protect. Assess your entire property, including the building, equipment, and inventory.

2. Buy the Right Coverage

Make sure you understand the risks of your industry, and purchase the right insurance to cover your risks and the assessed value of your property. Big problems could be down the road if your business is underinsured.

3. Read Your Policy Thoroughly

Before signing on the bottom line, read your policy thoroughly. You’ll want to review it with your commercial insurance agent to understand your coverages and policy limits, deductibles, and premiums.

4. Take Measures to Mitigate Risks

By increasing security measures, installing sprinkler systems, and improving and practicing safety protocols, you can reduce risks around your business. This can help you potentially receive discounts on your commercial insurance.

5. Maintain Good Records

Develop a solid recordkeeping system, and keep good records of company property, inside and outside your building. Use serial numbers, document purchases, and maintain invoices for equipment.

6. Expect Your Coverages to Change

Unless you don’t expect your business to grow, buy insurance that can grow and change with your company. Review and update your policy with your commercial insurance agency regularly.

7. Be Prepared for Natural Disasters

Determine whether your business may be prone to hurricanes, tornadoes, flooding, and other severe weather. If so, seek specialized coverage to mitigate those risks.

8. Secure Your Property

Many businesses suffer losses from theft and vandalism. Take measures to secure your property and reduce the risk of loss from theft or vandalism. Consider adding a crime policy to your commercial insurance.

9. Work With an Agent

Commercial insurance can get complex. Working with a commercial insurance agent who has the experience to see that you have identified your coverage areas and understand your policy is essential.

Get the Most Out of Your Coverage to Protect Your Business

Maximizing your commercial insurance coverage begins with properly assessing the value of your property and the risks your company faces. Taking steps like reviewing your policy regularly and securing your property can go a long way in helping you get the most out of your coverage — and keep your business thriving and growing.

What Types of Coverage Are Found in Commercial Insurance Policies?

If you run a business, you know you need to protect what you’ve built with commercial insurance. However, many business owners — and particularly those new to company ownership — don’t realize just how many types of commercial insurance are available to them. Here’s a look at some of your options.

Workers’ Compensation Insurance

Most types of employers are required to carry workers’ compensation insurance. This coverage may pay for medical treatment and partially replace lost wages if an employee gets hurt at work.

Even if you aren’t legally required to carry workers’ compensation insurance, it’s worth considering. When you compare the cost of insurance premiums (especially for a low-risk business with only a few employees) to that of a personal injury lawsuit, investing in a policy is the obvious choice.

General Liability Insurance

Along with workers’ compensation insurance, general liability insurance is among the most important types of coverage a business can have. It may pay for medical costs and other expenses if a non-employee is injured at your place of business. And if the case goes to court, your insurance may also pay your legal fees.

Liability insurance could also cover you if a competitor claims you committed “advertising injury.” This is when an ad slanders a competitor or uses copyrighted material. For example, you might need your general liability insurance if you create an ad that uses a competitor’s logo or claims that a certain competitor overcharges.

Cyber Insurance

If you store any kind of sensitive customer information online, cyber liability insurance may cover the costs you incur in the event of a data breach. If hackers get into your database, they may steal pieces of data like these:

• Social Security numbers

• Credit card numbers

• Addresses

• Phone numbers

• Health records

If your company is the victim of a data breach, you might be legally required to notify your customers, which can sometimes be expensive. You also may face lawsuits and all the legal fees that come along with them. The right cyber insurance policy can limit the financial impact on your business.

Errors and Omissions (E&O) Insurance

General liability insurance protects you if someone gets injured on your property, but it doesn’t cover problems with your work. E&O insurance is essentially professional liability coverage, and it may help cover costs associated with errors in your work.

For example, imagine that you’re a contractor, and you make a mistake that causes thousands of dollars in damage. If you have E&O insurance, your insurance will pay for the damage. If you do not, you’ll be stuck covering the costs of any damage out of pocket.

How much E&O insurance you need depends on the kind of work you do and the size of your business. A commercial insurance agent can help you choose the right policy. 

How Do You Know What Kinds of Commercial Insurance to Get?

Insuring your business is a critically important decision. However, if you’re like many business owners, you’re unsure which types you need (and don’t need). The good news is that you don’t have to make that determination alone. The right commercial insurance agency can get to know you and your business and help you create a policy.

8 Key Types of Commercial Insurance Coverage to Get

According to the Insurance Information Institute, there are more than eight million small businesses in the United States with one thing in common: they would be wiped out by disaster or a lawsuit without the right insurance coverage. In 2022 alone, commercial insurance losses totaled $202,732,883,000.

Carrying commercial insurance can reduce the risks you know your business faces, as well as the ones unforeseen. However, commercial insurance coverage can be confusing, leaving you wondering which coverage is necessary for your particular company.

As a business owner, you want to see your company grow, and both you and your employees rely on it to provide your livelihood and help you take care of your family. Here’s what you need to know about the types of commercial insurance that are key to protecting your business.

What Is Commercial Insurance?

Commercial insurance, also known as business insurance, can provide coverage against financial losses in your business from unexpected events, such as: 

• Accidents

• Burglaries

• Thefts

• Natural disasters

• Lawsuits

• Employee issues

You can obtain this insurance through a commercial insurance agent, who works to analyze the specific needs of your business and recommend the appropriate coverage.

8 Key Types of Commercial Insurance

You can buy many types of insurance from a commercial insurance agency. But these eight types of commercial insurance are essential for most businesses, regardless of the industry: 

1. Property Insurance

Property insurance is designed to provide coverage for the physical building where you do business. It may cover the building itself, your inventory, and your equipment — including computers and furniture — from loss or damage.

2. Liability Insurance

Known as commercial general liability insurance, this coverage may safeguard your company against claims for bodily injury, property damage, slander, and false advertisement. These claims could arise from your business operations, services, or an employee.

3. Business Interruption Insurance

If your business is forced to temporarily close or relocate because of a covered hazard, business interruption insurance may pay for loss of income while you’re closed or the costs of relocating.

4. Workers’ Compensation Insurance

Most states require businesses — including small businesses with one employee — to carry workers’ compensation insurance. This insurance can cover the medical expenses and lost wages of an employee injured on the job. 

Worker’s compensation insurance also has a benefit to you as an employer. Once an employee accepts insurance coverage for an injury, the employee typically waives their right to sue your company.

5. Commercial Auto Insurance

Commercial auto insurance pays for injuries and damages caused by your company’s vehicle or a personal vehicle used for company business. The insurance also can pay for damage to the vehicle.

6. Professional Liability Insurance

If someone files a claim against your company for negligence or faulty work, that claim may be covered by professional liability insurance. Other risks could include mismanagement of company assets and unlawful employment practices.

7. Crime Insurance

Your business may be able to recoup any losses from crime. These crimes may include fraud, burglary, theft, or employee dishonesty.

8. Cyber Insurance

Cyber insurance, or cyber liability insurance, may cover losses from a data breach or other cyber issues. For example, it can cover cyber extortion, investigative costs, regulatory expenses, and business interruption.

Find the Right Coverage for Your Business

Your company means a great deal to you, and many people count on it continuing to operate, even if an incident occurs. Talking to your commercial insurance agent can help you match the types of insurance necessary to effectively safeguard your business.

What Are the Steps Involved in Filing a Commercial Insurance Claim?

As a business owner, having the right insurance coverage when something goes wrong can mean the difference between a quick return to normal operations or no return at all.

A commercial insurance agent can assist you with protecting your business against risks. You can turn to a commercial insurance agency for coverage like professional liability insurance, general liability insurance, commercial auto insurance, and workers’ compensation.

Each type of commercial insurance has specific requirements for claims. Still, if your business experiences a loss or damage, you can follow these general steps to file a claim.

What Is a Commercial Insurance Claim?

A commercial insurance claim is a request from you, the business owner, to your insurer. This request is for a payout for a loss or damage covered under your business insurance policy.

According to Forbes Advisor, the top three claims business owners face are:

• Burglary or theft

• Water-related damage

• Wind and hail damage

When an incident or accident occurs, you must file a claim with your insurance provider as soon as it is safe to do so.

Steps for Filing a Commercial Insurance Claim

Insurance providers usually require you to file a claim within 72 hours of a loss or damage. Filing as soon as possible helps you obtain the resources you need to get back on track faster. It also allows your insurer to provide directions on preserving evidence and protecting your business from additional damage.

Follow these steps for filing your commercial insurance claim:

Review Your Policy

Each insurer has a way it prefers to receive your claim — online or by phone. Following your provider’s procedure can minimize delays. Also, you can check the declarations page of your policy to ensure your loss or damage is covered.

Collect Evidence

Once you determine whether you can file and how to file, gather any relevant evidence you can, including:

• Contact information for you and others involved

• Policy information

• The type of loss or damage, such as property or liability

• The date of the loss

• A detailed description of the loss, damage, or injury

Taking photos can prove helpful to your claim. You also should take inventory, save receipts, and get quotes from two contractors for repairs. Tracking lost work hours and keeping records of all your related conversations is important as well.

Contact Your Insurer

The faster you contact your insurance provider, the faster the investigation can get underway. Delaying your filing can make it harder for an insurer to verify your claim.

Work With Your Claims Adjuster

Once you’ve filed your claim, a claims adjuster will be assigned by the insurance company within a few days. You will share all the documentation you’ve gathered with your adjuster, who is responsible for investigating whether your claim is covered and the amount of a payout.

Stay in touch with your adjuster. If you don’t hear from your adjuster within seven days to a few weeks, give them a call.

Consult an Attorney

You also might consider consulting an attorney, depending on the type of loss. If your claim is complex, an attorney can aid in getting all the right documentation together.

If Your Claim Is Denied

After the adjuster’s investigation, the insurance company may approve or deny your claim. If it is denied, you can contact your insurer to tell your story and contact your state department of insurance. At any stage of the process, a conversation with your commercial insurance agent can go a long way in understanding your coverages and filing correctly.

7 Profitable Reasons Commercial Insurance Is Important

Have you ever driven by an empty building damaged by a fire or storm and wondered what happened to the business? It might have been the victim of being underinsured or uninsured.

A company that fails to purchase the right commercial insurance can find itself struggling to survive or out of business if hit with a fire, theft, or claims from accidents. If you’re a business owner, take a closer look at why commercial insurance is both vital and profitable.

What Is Commercial Insurance?

Starting and building a business involves many risks. Commercial insurance helps you shift some risks from your business to an insurer. Whether it’s damage to a consumer, a theft from your company, or an injury to an employee, commercial insurance is available to help your company withstand the financial blow.

A commercial insurance agency like Garrett Insurance can help you customize the right policy to help you stress less about an unforeseen event and focus more on running your company.

7 Reasons Commercial Insurance Is Essential

You have a range of costs to juggle to keep your company operating and growing. Keeping the cost of insurance in check is among them, but commercial insurance can also prove profitable in a business. Here are seven reasons why:

1. Fulfills a Legal Requirement

Many states require you to carry insurance to open your doors — for good reason. For instance, commercial auto insurance can help protect your company against claims if a work vehicle causes injury or damage from an accident. The insurance may also cover your work vehicle if it is damaged from rolling over.

2. Covers Work-Related Injuries

Federal law requires you to carry worker’s compensation insurance. Most people think about worker’s compensation insurance helping employees who might get injured on the job. However, worker’s compensation also supports business owners. Employees who file a claim and have their claim accepted can’t turn around and sue the employer.

3. Keeps Your Business Operating

Commercial property insurance can help get your business up and running after a theft or damage from a fire or storm or keep it moving forward if a key piece of equipment is damaged. Working with your commercial insurance agent, you also can make sure you buy coverage to provide loss compensation while your company can’t open its doors.

4. Helps Your Customers 

A business owner’s policy with general liability insurance may help fend off lawsuits from customers who claim they were harmed or injured by your product. The insurer can compensate your customers on your behalf.

5. Adds Credibility

Customers, vendors, and lenders may feel more confident that you are looking out for their interest if you carry commercial insurance. They may prefer to do business with another company carrying commercial insurance if you fail to buy it.

6. Supports Your Contracts

You may run into suppliers or delivery services who supply and deliver materials to your business or have a need to step foot on your property. Some suppliers and delivery services require you to purchase commercial insurance before entering into a contract.

7. Protects Lenders

If you want to buy or build a new building, a lender likely will require you to have insurance. It might be difficult for you to find the money to start or expand your business if you don’t carry insurance.

Protecting Your Bottom Line With Commercial Insurance

There are countless ways commercial insurance can help your bottom line. A discussion with your commercial insurance agent can help you discover the profitable reasons to purchase insurance for your own business.