A common question of many first time business owners is, “what is commercial insurance?” For the uninitiated, the most common types of commercial insurance are property, liability and workers’ compensation. In general, property insurance covers damages to your business property; liability insurance covers damages to third parties; and workers’ compensation insurance covers on-the-job injuries to your employees.
By and large, commercial insurance is important coverage for any business entity. In fact, it’s one of the best investments a business owner can make, since it can be instrumental in protecting the business from any potential losses caused by unforeseen and/or unfortunate circumstances.
Where to look for coverage
There are many ways to go about finding just the right insurance for your needs. You could start by asking owners of similar types of companies and enterprises about their experiences. Perhaps the best way to get quotes on commercial insurance would be to contact a local agency and speak to a reliable agent who specializes in this particular product.
The people within your organization responsible for purchasing insurance should interview several different agents and select a licensed, knowledgeable agent, one that is able to discuss different types of insurance that are available and assist the company in selecting the best type for its particular needs. As an added tip, you may want to look into a business owner’s policy (BOP), which combines general liability and property insurance, which may be slightly more cost effective.
Different businesses obviously have different needs when it comes to insurance. For example, there may be some types of commercial insurance that you may not need. Your company may require commercial property insurance, but not commercial auto insurance. So, in answer to the question, “what is commercial insurance?” It’s merely the cornerstone of any sound business risk management plan.
Keep in mind that you can only benefit by learning about the different types of insurance that are available, even if your company doesn’t need them all at present. As your business grows and expands, you may discover that your insurance needs are constantly changing. As your policy needs change, you’re going to require information, as well as advice, on how to proceed and also to decide whether or not to add to, or change, a policy later.