Commercial insurance is by no means a one-size-fits-all, but there are risks that almost all businesses share. Whether you’re an accounting firm or web engineering firm, have a “solopreneur” space or a multi-story building with hundreds of employees, understanding your organization’s exposure plays a key role in effectively protecting your organization.
In this article, we uncover the five factors you should consider when determining which commercial insurance policy is right for you, and examine the most common types of business coverage.
What commercial insurance does my company need?
Consider these five key factors when determining which commercial insurance policies or policies your specific organization should invest in:
- Regardless of whether you own your office space or rent it
- The type of services you offer
- The location of your physical office
- Whether customers or clients visit your premises
- Regardless of whether you keep cash on site or not
Below, we examine some common types of policies that address these variables and why they’re important to every business.
What is the most common commercial insurance?
The five commercial insurance policies most commonly used by businesses include general liability insurance, commercial property insurance, cyber insurance, commercial auto insurance, and employment practice insurance (EPL).
Check them out and what they cover below.
1. General liability insurance
General liability insurance is vital for businesses of all types and sizes.
If you own the building where your business operates, this insurance protects the well-being of your customers, as well as anyone using your parking lot, walkways or common areas. If you rent out your space, your lease probably only requires you to carry liability insurance that names your landlord as an additional insured.
At the highest level, general liability insurance protects your company from legal proceedings and the resulting financial losses.
These lawsuits may result in personal injury, property damage, personal injury (e.g., defamation, slander, invasion of privacy, etc.), advertising violations, etc. Although they most commonly arise based on injuries that occur on-premises, claims can also arise from problems with ongoing off-premises operations or with operations or products that your company has contracted.
2. Commercial property insurance
If you own the commercial building where your business operates, it is important to have buildings insurance, known as a commercial property policy. This insurance can provide protection against loss of property and income resulting from an insured cause of damage, such as: B. a natural disaster or a burglary.
Property damage coverage includes insurance of the building itself and the contents within the buildings as specifically described in the insurance policy. For this reason, contractors considering this type of protection should take stock of the contents of their building when determining their coverage levels. When determining this coverage, consider items such as office furniture, fixtures, equipment, employees’ personal belongings, art collections on display, receivables, grounds, etc.
3. cyber coverage
Any business that conducts its work online should invest in cyber coverage. Whether you are a technology company that mainly works with online systems or a small business that processes payment transactions digitally or stores customer data on an online platform, protection against a cyber attack is of crucial importance today.
Did you know: More than half of US companies have already experienced a cyber attack
last year. 72% of hacked companies spent $5,000 to resolve the incident
More than a third spend over $50,000 on response expenses.
Cyber coverage offers multiple layers of insurance protection against the complex, ever-evolving cyber risks facing organizations.
4. Commercial Auto Insurance
Commercial auto insurance provides coverage for your company-owned or leased vehicles.
Several factors determine the type and cost of commercial auto insurance policies. These include, among others:
- Business class (NAICS code)
- Business Use
- radius of action
- Each vehicle’s size, age, liability limit and new price
Most commercial auto policies offer both property insurance (which protects your vehicle from damage) and liability insurance (which protects against personal injury and damage to their property).
Insurance policies can be expanded to include additional protection for medical payments, uninsured motorists, personal injury protection, use of the employee’s car on employer’s behalf, and more.
5. Labor Practices (EPL) Insurance
Employment Practices Liability (EPL) insurance protects employers against employee claims for wrongful termination, discrimination or harassment. This policy typically helps cover liability claims or defense costs in the event of a covered claim.
In addition to the policy itself, those who purchase EPL insurance through Central also gain access to a range of useful resources. This includes experienced EPL claims specialists, legal support from specialist employment lawyers and a loss prevention website with model employment policies and procedures, information on the law and advice to help you prevent or minimize employee complaints.
Business-specific policy options with Central
Although the five types of insurance reviewed above are among the most common among commercial policyholders, top tier airlines like Central recognize that there are many other unique types of coverage that a business may need.
For this reason, Central has developed a number of Special programs for companies in all shapes and sizes including service businesses, wholesalers, auto repair shops and repair shops, retailers, contractors, office managers and more.
In addition, Central offers a range of business policies that strategically leverage some of the broader coverage options discussed in this article. These include, among others:
Inland navigation insurance: This policy protects property in transit, computer equipment and data, contractor equipment, works of art, and buildings under construction.
criminal insurance: This policy protects against burglary, robbery and employee theft.
work compensation insurance: This policy protects your company in the event of an employee accident while at work.
Pollution liability insurance: This policy protects your business from the effects of an unintended pollution-related event.
Take the next step
Now that you have a better idea coveFury Your business might need, it’s time to start the conversation with your insurance agent. They have opinions, experience and data to help you make a decision and together you can ensure you get the perfect cover for you.
The above information is general in nature and your policy and coverage may differ from the examples provided. Please read your policy completely to determine your actual coverage available.