Understanding Business + Commercial Insurance

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Much like the various homeowners policies available, there are multiple options for commercial insurance as well. Different industries have varying insurance needs, and as such require different types of policies.

Homeowner’s insurance coverage often includes coverage for the dwelling, personal property, loss of use, and personal liability. Similarly, most business insurance policies contain coverage for multiple risks as well. The most common types of commercial insurance are property, general liability, and workers’ compensation. Other coverage types available are business income coverage, hired & non-owned auto coverage, professional liability, and liquor liability. Here are 3 of the most recommended coverages for businesses:


Comm Prop Ins



Generally speaking, property insurance covers damage to the business’s property such as signs, furniture, computers, equipment, inventory, and the building (should one own it).


Gen Liability Ins




Liability insurance covers damages to third parties. This can often be referred to as General Liability Insurance or Commercial General Business Liability. This type of coverage protects a company’s assets and pays for any covered claims including legal costs if someone is injured on the business’s premise, or arising out of the business’s operations. General liability coverage can protect tenants of a building if the tenant causes any damage to the property being leased. It can also cover you against claims of false advertising including libel, slander, and copyright infringement (www.sba.gov).


Workmans Comp Ins




Workers’ compensation covers on-the-job injuries employees may sustain, typically providing wage replacement and medical benefits to employees injured while on the job. Many states require companies with a certain number of employees to obtain workers’ compensation insurance. It is important to note that when an employee files a claim under the business’s workers’ compensation, they forfeit their right to sue the employer for negligence.


Doctors and lawyers may be required to obtain malpractice insurance (also known as professional liability insurance or errors & omissions insurance), which can cover various professionals against inadvertent mistakes. Learn more about small business and commercial insurance by visiting the Small Business Administration’s website.


Resources: http://en.wikipedia.org/wiki/Workers’_compensation; http://www.sba.gov/content/types-business-insurance; http://www.irmi.com/online/insurance-glossary/terms/c/commercial-general-liability-cgl-policy.aspx

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