There are various types of commercial insurance meant to provide businesses, their owners, and their people some forms of protection. There is no such thing as one-size-fits-all insurance, as there are different types of companies out there that provide different types. Each insurance type is designed and best suited for a particular business. The most popular types of commercial insurance are property insurance, liability insurance, and workers’ compensation.
In this article, we’ll share what these three common types of commercial insurance entail and how your business will be covered. Keep on reading to learn more about commercial insurance.
3 Types of Commercial Insurance
1. Commercial Liability Insurance
This is a broad type of insurance policy that provides liability insurance for general business risks. In the US, it is generally referred to as the Commercial General Liability (CGL), which serves as the “first line” of coverage typically bought by a company. This insurance covers common workplace risks such as bodily injury or property damage on the business premises, personal and advertising injury, and medical payments.
2. Workers’ Compensation
Often called Workers’ Comp, this insurance type provides wage replacement and medical benefits to employees who have been injured in the course of employment. In return, the impacted employees no longer have the right to sue their employer for negligence. In most cases, state laws require companies with employees to have some forms of Workers’ Comp, and for the most part, you can expect most companies to have this coverage.
3. Property insurance
In a nutshell, this insurance type provides protection against common risks to property, such as fire, theft, and some weather damage. It covers financial losses and damages to commercial properties. You can purchase specialized forms or additional insurance such as the following:
Boiler and machinery insurance: This covers the accidental breakdown of boilers, machinery, and equipment. That’s why it’s sometimes referred to as “equipment breakdown” or “mechanical breakdown coverage.”
Builder’s risk insurance: This covers buildings while they are still in the process of being constructed. For instance, it covers the damage of a partially constructed building brought by an extreme storm.
Glass insurance: This specifically covers broken windows and plate glass windows in business establishments.
Business interruption insurance: This covers the loss of income and expenses due to property damage or loss.
Ordinance or law insurance: This covers the costs involved in the demolition and rebuilding of a property that has been partially destroyed.
Tenant’s insurance: This covers tenants on commercial leases. For instance, it pays damages for the improvements you make to your rental space.
Crime insurance: This covers property crimes such as theft, burglary, and robbery of money, securities, stock, and fixtures from employees and outsiders.
Conclusion
At this point, you may be considering getting commercial insurance for yourself, your business, and your people. Whether it’s property insurance, liability insurance, and workman’s compensation, make sure to sit down to think and factor in what your business and your employees need. From there, you’ll be able to decide on a particular commercial insurance type suited for your company.
If you need an insurance broker in Henderson NV to help you look for the best commercial insurance product, get in touch with us today! We’re happy to help.
