Types of Commercial Insurance to Consider
Properly managing your business risks is an important part of every ongoing business enterprise. There are three main steps: (1) choosing your insurance agent or insurance broker, (2) selecting the insurance company, and (3) deciding upon the specific insurance policies or type of insurance coverage you will need for your particular business.
In general, there are three types of commercial insurance: property insurance, liability insurance, and workers compensation insurance (commonly referred to as “workers comp”).
Property Insurance pays to repair or replace personal property or real property that is damaged as the result of a fire or other covered event.
Perhaps a windstorm blew down a large tree and it fell on the side of your office or warehouse damaging your customer entrance. Or lightning struck your building and started a fire that damaged a large part of your inventory.
Some of the property coverages you’ll find protect you from equipment breakdown, debris removal, inventory loss, damage to furniture, fixtures, computers, equipment, as well as such things as computer fraud, property in transit, utility interruption, and damages to your leased property as the result of a break-in.
Liability insurance covers you when others claim that your actions caused a loss or an injury and that your business is legally responsible.
Depending upon the coverages you select (and there are lots of choices available) you can protect your business from damages to the property you lease, claims of false arrest, invasion of the right of privacy, malicious prosecution, libel or slander, copyright infringement, computer fraud, wrongful termination, sexual harassment, or discrimination.
Workers Compensation Insurance (Workers Comp) covers your business when your employee incurs an on-the-job injury or illness.
In most states, where an employer has workers comp coverage, an employee is not able to bring a lawsuit against the employer for the work-related injury. The employee must “go through” the workers comp process as described by state law.
The workers comp policy coverage includes such items as compensation for your employee’s lost wages, the cost for their medical care and rehabilitation, as well as any legal services that are necessary relating to a workers comp liability claim.
Additional protection varies from state to state but may include coverage for employees who travel out of the country, assistance in conducting fraud investigations, providing managed care services, as well damage payments resulting from 3rd party lawsuits.
Commercial Insurance Summary: It is important to remember that all commercial insurance policies are not the same. They come in a rainbow of versions that might be described as good, better, and best. Talk to your insurance agent or insurance broker, get several quotes from different insurance companies, and get good advice as to which policies, and which coverages, are right for you.