What is Covered Under a Commercial Insurance Plan?

Every serious business needs some sort of protection for when the unexpected happens, and commercial insurance provides exactly that. Yes, you’ll need to pay premiums every month, but if you work with a good insurance consultant, you can get a good deal that won’t eat into your expenses significantly. In return, you get coverage from incidents that have been known to put companies without insurance out of business.

So, what kind of protection does a commercial insurance plan really provide? Find out below:

  1. Injuries and property damage

If you run a business that receives a lot of foot traffic, this coverage will come in handy. Known as general liability insurance, it shields your company from the cost of lawsuits that arise when people get injured on your premises. It may also cover the cost of replacing your customers’ damaged property.

So, say a visitor slips and falls in your retail store and decides a court case or out-of-court settlement is the way to go, you won’t have to dip into the company’s overhead to pay for that. The insurance provider picks up the tab, and business can go on as usual at your store.

  2. Damages to your company’s property

You can also insure your business’s physical location against vandalism, fire, and theft – and if any of the previously mentioned were to happen, you’d get a check from your insurance provider. This type of insurance is called commercial property insurance, and it also covers equipment used in your day-to-day operations.

If you run a small business and would like to combine commercial property insurance with the general liability insurance mentioned in (1) above, take a look at the business owner’s policy (also called small business insurance). It covers everything we’ve mentioned so far plus business interruption, i.e., it replaces lost income if a company gets shut down temporarily. 

  3. A data breach or cybersecurity attack

In the past, it was assumed that cyber liability insurance was reserved for companies that offer computer or tech-related services. But the internet has spread into most processes today, and any small business can be the victim of a cyberattack. For example, if you use a point of sales terminal, that’s an avenue that can be compromised, causing the loss of sensitive customer data.

If such an event occurs, customers are within their legal rights to sue the company involved and get compensation. That’s why many businesses use cyber liability insurance to protect themselves. This type of commercial insurance covers the lawsuits and potential settlements.

  4. Lawsuits from disgruntled clients

While all companies like to think they provide a perfect service at all times, this is not the case in reality. Workers make mistakes, omit key information, or fail to take note of some critical detail; and oftentimes, this can be costly. That’s why there’s errors and omissions insurance.

Because if you (or an employee of your company) make a mistake and it costs your customer money, they’ll be looking to you to bear the cost of that error. And if you don’t have the right commercial insurance, that expense will come out of pocket. This means your company pays for the lawsuit and any punitive damages awarded by the courts.

  5. Work-related injuries or employee lawsuits

This type of commercial insurance is called workers’ compensation insurance and it covers costs incurred from employee injuries, work-related accidents, and any lawsuits that may spring up due to these incidents. Unlike some of the other types of commercial insurance in this post, workers’ comp is required by law in pretty much all US states. So, chances are high that you’re already familiar with it.

Getting solid commercial insurance for your business is one of the smartest decisions you can make. And while many worry about monthly premiums when everything is running smoothly, it is on stormy days that the importance of this protection comes to fore. If you own a small business, do yourself a favor and learn more about what type of insurance you need now.

To speak to a commercial insurance specialist about your options, follow this link to set up a free consultation. It will only take some minutes, but you’ll learn key information that will inform your future decisions vis-a-vis getting coverage for your company.