Commercial & Business Insurance

As part of conducting business - you need to insure almost every aspect of your operations to protect your company from claims and lawsuits that most often than not will cost you financially.

Whether you wrongfully dismiss an employee or a customer falls and breaks a leg on your premises, dealing with claims and lawsuits while running a business is not a matter of if but when you're going to get one.

There are various different types of commercial business insurance policies that will cover your business for almost everything that could go wrong.

Continue reading to learn more about what those are.

Commercial insurance (also referred to as business insurance) is a broad term for policies that protect your business from financial loss. 

In short, it's a way of making sure that if something bad happens to you or one of your employees while doing business, there will be enough money to cover the cost of any medical expenses.

When it comes to commercial insurance, there are several different types of policies you can take out. Most businesses - particularly the smaller companies won't require all or even most of the small business insurance types we’ve listed below.

This means that the commercial insurance you get will mostly depend on your business.

Business Owner’s Policy (BOP)

BOP insurance policies combine a number of different types of insurances into one policy. An example of a BOP insurance policy would be a combination of:

• Property insurance
• Commercial auto insurance
• Business liability insurance

The combination of policies you get under a BOP policy will depend on your business and insurance preferences.

General Liability Insurance

General liability insurance costs much less than other types of commercial insurance. It can cover you in the event that someone claims that your business has injured them or damaged their property while performing a service for them or because of your product.

For example, if a customer trips over a rug because it's not fixed down properly, they may have a claim on you for the injuries that they have sustained.

Commercial Property

Commercial property insurance will cover you in the event that your business premises are damaged by fire, flood, or some other catastrophe. A commercial property insurance policy can also provide coverage for your stock.

For example, if there is a catastrophic water leak in your building and it damages all of your office equipment - this would be covered under commercial property insurance.

Workers’ Compensation

Workers’ compensation will cover any injuries that employees may sustain as a result of doing their job. This includes motor vehicle accidents and injuries sustained outside the office such as self-defense during robberies.

Professional Liability / Errors and Omissions (E&O)

Professional liability (E&O) covers claims made by the customer for the wrongdoing of a professional. It can be an accountant, lawyer, architect, and virtually anyone that can be held responsible for their professional actions.

Some examples of E&O claims can be:

• An attorney giving wrong advice
• A CPA who understands your tax liability but fails to file it on time
• An architect whose faulty plans result in structural damage

Contingent Cargo

Contingent cargo insurance will protect you should anything happen to the cargo being transported by your company. This includes damage and theft but doesn't cover logistical issues such as delays.

Contingent Auto Liability

Contingent auto liability policies cover your company from any damage or theft that may happen to the vehicles being used by your employees. This is usually only purchased when you have a fleet of vehicles as it can be very expensive.

While most commercial insurance policies are required by law in most states, even if the policies relevant to your business aren't a legal requirement, they are always great to have.

The biggest benefit of having any of the above policies is the financial umbrella they provide your business with. Lawsuits and claims can be very expensive and can leave a significant financial hole in your business, which can be hard to recover from.

In other words, if you don't want to suddenly have to get out of pocket money for sudden accidents, get your business insured.