Unless you are a very small business running without a lot of overhead and liabilities, it is a very good idea to have commercial insurance. Indeed, your financial safety could very well depend on it as commercial not only allows you to recoup your losses in the event of a disaster outside your control, but allows you get your business up and running again. Commercial insurance can also save the ruin of your business by those who would seek to benefit by suing you for damages they have sustained directly in your workplace or through the products and/or services that you market.
There are three components to commercial insurance, and you can buy policies that cover one or all of them according to the type and size of business you own. The first one of these, property insurance, is most similar to homeowner’s insurance. It reimburses you for damage to your place of business, whether through fire or damage from burglary. As with all insurance policies, you must be careful in making sure that you get the coverage you think you might need. Indeed, it can often be a good idea to get coverage for things you don’t think you will need, if the extra cost is reasonable.
Commercial liability insurance is also an important component of commercial business insurance. It guards against lawsuits brought on by customers, and allows you to be reimbursed for things like legal fees and settlement money. Some professions need liability insurance more than others. The healthcare profession, for instance, needs malpractice insurance as they work directly with patients’ health and a mistake here could be very costly. Malpractice insurance affects other professional fields as well, from architecture to accountants. Even businesses that sell a product may benefit from this insurance in the event that a customer suffers some injury or damages due to their company or product. Indirect damage, such as Errors and Omissions, can be covered under liability insurance. You can also be reimbursed if your product causes harm to a customer, or if a company vehicle causes the damage. Under commercial vehicle insurance, you can also get coverage that will reimburse you if your vehicle suffers any damage or is broken into. Remember that there are many frivolous lawsuits these days and even legal fees can have a devastating effect on a business. Commercial liability insurance can make the difference between whether or not your business survives such a lawsuit.
The third type of commercial insurance is worker’s compensation insurance, and this is to protect you as the employer from exorbitant expenses if your employee is injured while on the job. Most states in the U.S. require some form of this insurance, and it reimburses the employer for medical bills and days of work missed due to the injury, as well as lawsuits for employer negligence.