What are the 4 most common types of commercial insurance?

 

Introduction

There are many factors involved in the selection of commercial insurance, such as the type of business, industry, location, etc. However, the four most common types of commercial insurance are property, general liability, worker's compensation, and auto.

The general definition of commercial insurance is that it is insurance coverage purchased by a business or corporation. There are many different types of commercial insurance available and not all businesses take advantage of the same kinds. Several different kinds of commercial insurance can be broken down into four main categories: property insurance, liability insurance, business vehicle insurance, and employee benefits.

1.    Property commercial insurance

2.    Liability commercial insurance

3.    Workers' compensation commercial insurance

4.    Business interruption commercial insurance

Detailed:

What Is Property commercial insurance

Property commercial insurance is a type of business insurance that covers any property owned by your company. This type of policy is often referred to as a blanket policy because it covers all of your properties and interests.

Property commercial insurance also covers loss or damage caused by fire, theft, and vandalism. In addition, it covers liability issues if someone is injured on your property or if you caused an accident off-site.

Property commercial policies may also be referred to as building and personal property policies, or BOPs. They differ from general liability insurance because they cover specific types of property, not just injuries and lawsuits.

What Does Property commercial insurance Cover?

Building - The structure of the building and its contents are covered for loss or damage due to fire, lightning, windstorm, or hail. If the building's contents are damaged by smoke or water that results from such natural disasters, they're also covered under this section of the policy.

Business Personal Property - Business personal property includes inventory and equipment used in your business operations. If you're renting a property from someone else, you may need separate rental property coverage to protect against loss resulting from fire, theft, or other disasters. You can purchase this additional coverage through an endorsement or rider attached to your business owner's policy (BOP).

Loss Assessment - Loss assessment coverage protects against losses associated with non-payment by other insured parties within your organization if they file for bankruptcy.

What is Liability commercial insurance?

Business owners need to make sure they have the right type of insurance.

Whether you're a small business owner or an entrepreneur, it's important to understand the different types of insurance that are available and how they can help protect your business.

Liability commercial insurance is just like it sounds — it covers the legal responsibility for damages associated with your business. In other words, if you accidentally injure someone while working, or if one of your products causes someone harm, liability commercial insurance will cover those costs.

Types of liability commercial insurance coverage

There are three main types of liability coverage: bodily injury liability, property damage liability, and advertising injury liability. The first two cover medical expenses and property damage caused by your employees or customers. Advertising injury liability protects against any claims made against you due to something you said or did in an advertisement or promotional material that injured someone else's reputation, such as slanderous statements made against a competitor in a newspaper ad.

Workers' compensation commercial insurance

Workers' compensation commercial insurance provides coverage for employers against losses resulting from workplace injuries. Workers' compensation is a no-fault insurance policy that provides benefits to employees who are injured on the job, regardless of fault.

Workers' compensation policies are typically written on a state-by-state basis, which means that there is no uniformity in coverage across states. Therefore, it is important to select a provider that understands your needs and can offer solutions designed to meet them.

Different forms of workers' compensation commercial insurance

Workers' compensation commercial insurance is available in different forms:

Comprehensive coverage: This type of policy covers both medical costs and lost wages incurred by an employee as a result of an injury sustained at work. Comprehensive coverage also includes liability protection if an employee or third party files a claim against you or your business because they have been injured by your actions or inaction.

Medical expense only (ME) coverage: This type of policy will pay for medical costs only associated with an employee's accident at work but does not provide any lost wage reimbursement or liability protection from lawsuits filed against your company.

Business interruption commercial insurance

Business interruption insurance is a type of commercial property insurance that protects your business from losses caused by your inability to operate due to interruptions of your business operations.

Business interruption insurance may be used by businesses with high fixed costs, such as manufacturing or distribution companies. It may also be useful for businesses that rely on recurring income, such as restaurants or hotels.

Types of Business Interruption Insurance

Business interruption insurance policies can vary in coverage and price among insurers. Most policies include the following types of coverage:

Building - This coverage pays a portion of your building's actual cash value in case of damage or destruction. It also covers expenses related to relocation during repairs.

Equipment - This coverage pays a portion of the equipment's actual cash value in case of damage or destruction.

Transportation expenses - This coverage pays for transportation expenses (such as airline tickets) caused by an insured event. It also covers expenses related to relocating employees during repairs.

Conclusion

With so many commercial insurance policies available, choosing the right one can be tricky. To help make the decision, you should know what types of commercial insurance you're looking for. Here are four of the most common commercial insurance policies to help get you started.

Commercial insurance is designed to protect your business against several different risks. Some of the more common forms of commercial insurance covered in this guide include property insurance, liability insurance, coverage for vehicles and equipment, and inland marine insurance, which covers a wide range of properties on the road or at sea.

In conclusion, the most common types of insurance you will deal with when it comes to your professional business will be property insurance and commercial liability insurance. Although they both serve different purposes, they go hand in hand to ensure that your business has the protection it needs. Also, remember that there is a multitude of different factors which can affect what types of insurance you need, such as the type of property you own and the line of work you do.

loveyouNSM