Commercial insurance protects the assets and liabilities of a business. The policy typically lasts one year, and coverage depends on the property and liabilities you own. Depending on property type, your landlord, vendors, and project partners will also determine commercial insurance limits. Listed below are the four most common types of commercial insurance and how they protect your business.
General Liability
General liability insurance is a necessity for businesses that install items on customer property or handle customers’ property. This type of coverage also protects businesses that rent space and sell anything. Having this type of coverage is especially helpful if you have an online presence and conduct business dealings with customers across state lines. This type of insurance can also protect your brand and reputation. Check out Thimble.com for some important considerations when choosing general liability insurance.
A general liability insurance policy covers legal costs and settlements related to incidents that happen on your property. It can also cover medical payments for people injured on your property. The policy also covers third-party property damage, which is damage done to another person’s property by your business. You can also get this insurance to cover personal injury or damage to advertising materials. It’s a good idea to get general liability insurance even if you don’t have a retail location, as it may cover legal expenses if you make an error and a consumer suffers harm.
Generally speaking, a CGL policy will cover bodily injury claims for third-party victims. The coverage will also pay for smaller injuries, such as bruising. This type of insurance is also called goodwill coverage, because it protects a business’s reputation when it fails to treat injured parties properly. A CGL policy will pay for medical costs as well as damage to reputation in the event of a lawsuit.
Commercial Property Insurance
Commercial property insurance is an essential aspect of protecting your business from the financial consequences of a variety of incidents, including fire, theft, and windstorms. It is typically purchased as part of a BOP, which bundles liability insurance with property insurance. It is important to choose a company that is A-rated or higher by A.M. Best, which rates the financial strength of insurance companies. A policy should cover all of your business’s assets, including inventory, equipment, and furniture.
Commercial property insurance comes in two basic forms, named perils and basic form policies. Named perils policies provide the lowest level of coverage. Inflation-guard policies increase the coverage limit every year or at intervals that are determined by the insurer. Although this can raise premiums, inflation-guard policies provide additional protection as time goes on. It is important to compare the policy features and limits of the policies that you are considering purchasing so that you can make the best decision.
A standard commercial property policy covers the building and all its contents, including furniture, equipment, and inventory. It also covers other people’s property, including inventory and valuable documents. A commercial property policy also covers damage caused by physical events such as theft or vandalism. Depending on your business, it may be beneficial to add flood and earthquake coverage. It is also possible to add additional coverage, including personal property. A standard commercial insurance policy includes several add-ons, such as business interruption insurance.
Workers Compensation
Workers compensation insurance is the first type of commercial insurance that you should look into when you are setting up your business. This type of insurance is required by law and is usually the only one that an employer is legally required to purchase. States have different requirements and some do not even require an employer to carry this type of insurance if they are operating a one-person operation. The amount of coverage required by your state depends on the type of business you have, but in general, employers should consider the following.
Workers’ compensation insurance covers employees in the event of an injury or illness while they are at work. It pays the injured employee for their medical bills and covers any lost wages they may incur as a result. In addition to paying for medical bills, this type of insurance also covers the expenses of temporary total disability, which means that the employee can’t work for a specified amount of time but will eventually return to full capacity.
General liability and workers’ compensation insurance can protect your organization from legal liabilities. While both types of coverage are required in most states, they can be purchased separately or in combination with other policies. To find the right policy for your business, talk to an independent agent. The agent will explain the different types of coverage available and how they work. You can even compare the cost of these policies to other types of coverage. You’ll be surprised by how much they cost, and if they are a good fit for your company’s needs, you can buy them separately or together.
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