If you are wondering whether you need commercial insurance, the answer is most likely: "Yes, you need to protect the owners of the company and the employees". Running a business always involves some degree of risk. You can remain protected from potential issues with the right insurance policies in place. But how do you choose the right policy? There are a wide variety of commercial insurance types to consider. Fidelity Insurance Partners is here to help.
Different Types of Commercial Insurance Coverage
General liability coverage protects you from certain types of claims that may occur as a result of incidents that happen at your business. This includes things like bodily injury and property damage. It is often combined and sold as a package with other varieties of insurance coverage.
As the owner of a company, you are responsible if an employee gets injured at work. Carrying workers’ compensation insurance is a smart move. It covers the worker’s medical bills and usually a portion of their lost wages. In case your employee gets killed on the job, the workers' comp policy will pay benefits to the family they left behind.
If you are expanding or remodeling your place of business, you may need this special type of insurance to cover you during the process. A builder’s risk policy uses the estimated value of the completed project to determine the limits of the policy. It covers your property during the construction process, including the property that might be stored off-site at the time.
Professional liability insurance can protect you against mistakes that could cause costs to your business. Unlike other types of policies which generally cover bodily injury, this variety mostly covers financial damages suffered by a third party at the fault of your business.
Commercial Auto Insurance
As the name suggests, this type of policy covers the vehicles you work with at your business. It is also sometimes referred to as fleet insurance.
Business Owners Policy (BOP)
Not every business will qualify for this special type of policy that combines general liability and property insurance into a package deal. If you run a small company that is considered low risk, this might be an option for you. Low risk usually means the business has only up to 100 employees and a smaller physical storefront or location. The industry must also be considered relatively safe. A small jewelry store is going to present a lower risk of injury than a large manufacturing plant, for example.
The first step in getting commercial insurance is knowing what you need. Along with understanding your risk level and basic insurance needs, you will also want to look at whether you prefer a larger deductible with a smaller premium or a bigger premium with a lower deductible. Take the time to discuss the details of your situation with your agent prior to moving forward.