Commercial insurance:
Commercial insurance also known as business insurance is an insurance product that protects you against unforeseen issues that may affect your business. Commercial insurance protects employers and their employees from injury, business interruption and other risks.
You may have insurance for things like personal auto insurance, home insurance, or life insurance. You can imagine business insurance similarly.
Every company is different, so there is no one-size-fits-all business insurance. This is where an insurance specialist can help you.
If you own a business (or are a sole proprietor), you are often required by law to have commercial insurance. It can be confusing to know which commercial insurance policies are necessary or beneficial for your business.
1- Commercial Insurance Vs. Business Insurance
When business owners look for the best insurance policy for their business, they often get confused with the terms “commercial insurance” and “business insurance”.
Although they sound different, they are actually the same and the terms can be used interchangeably.
Some business owners may find they need one type of insurance or another, which can be confusing.
In fact, commercial insurance and business insurance are just one category of insurance covering all types of businesses.
2- Different Types of Commercial and Business Insurance:
General Liability Insurance:
Sometimes referred to as commercial general liability or CGL, this is the most basic form of commercial liability insurance. If you own a business, general liability insurance is optional.
General liability insurance includes:
- Cost of property damage claims against your company
- Medical expenses if someone in your business is injured
- Covered Claim processing administrative costs
- Court fees, judgments and settlement of claims covered
Note that liability insurance usually does not cover:
- Damage to your business or office property
- Personal injury claimed by your employee
- Motor vehicle accidents caused by you or your employees while driving to work
Workers’ Compensation Insurance:
Workers’ Compensation Insurance helps cover work related injuries and illnesses, pay for medical care, and replace lost wages while your employees recover. Most states require workers’ compensation insurance if you have at least one employee.
The insurer protects your employees in the event of personal injury and financial loss of any kind as a result of an industrial accident.
Worker compensation is based on a no-fault system. This system states that an injured worker does not have to prove that his injury or illness is the fault of another person in order to receive industrial injury benefits. Any injury or illness at work can be covered by employee insurance.
If you are a California employer, California Labor Code Section 3700 requires you to have workers’ compensation insurance. An insurance broker can help you get workers’ compensation insurance from an approved insurance company.
Another option for workers’ compensation is to obtain it through the State Fund. This state fund contributes to cost effective and low cost occupational accident insurance.
Another option for employers is self insurance. Your insurance broker can help you purchase workers’ compensation insurance from a licensed insurance company and provide information about state funds and self insurance.
Commercial Property Insurance:
Commercial property insurance is used to cover property damage to your business property. It protects your company assets from fire, explosion, burst pipes, storms, theft and vandalism. Note that earthquakes and floods are generally not covered by commercial property insurance unless added to the policy.
Remember that commercial property insurance is not the same as commercial auto insurance, which covers harm to vehicles owned by your business. If you need accident insurance for your car, truck or other business vehicle, look for commercial auto insurance.
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Professional Liability Insurance:
Umbrella Business Insurance:
Suppose you believe your company is at risk of being sued or in the middle of an unlikely lawsuit. In such a case you may want liability coverage in excess of the maximum amount of your business liability insurance.
You can often purchase an Umbrella Policy to add additional coverage. Umbrella policies can cover you for liability claims beyond what your typical policy would cover.