Generally speaking, commercial insurance covers businesses, and the two main types are cover your property and liability. Property insurance, as the name suggests, provides coverage for any business property or inventory that is stolen, destroyed from a loss, or damaged; liability insurance covers any damages to someone else’s property, including bodily injuries.
Most businesses that purchase commercial coverage choose combination of property and liability to cover anything that may go wrong. Oftentimes, mistakes made on the job, or simple accidents, can simultaneously affect both the business’ property as well as a third party’s health. For that reason, it’s important to consult with a broker to find the best deal for you and your business.
Property insurance covers losses and damages to personal property, like fire or flood damage to your office building. There are many different types of coverage, like a machinery policy to cover equipment breakdowns, a debris removal policy to cover the cost of cleaning up after a storm, and ordinance or law insurance to cover costs related to having to rebuild a building to code that may have been only partially destroyed by nature.
Crime insurance covers things like theft and robbery, and builder’s risk coverage takes care of any damage that might occur to buildings under construction. Bars and nightclubs often have a lot of glass and mirrors in the building, so they might have a type of glass policy that covers any glass breakage on the premises.
This type of commercial insurance covers injuries that you or your business might accidentally cause to happen to third parties. For instance, commercial vehicle insurance would cover any cars, trucks, or vans that you might use in your business. Errors and Omissions, or “E & O” insurance, covers any accidental mistakes that cause injury to others. An auto repair shop may have an auto repair policy to cover any mistakes that may happen in the garage that could cause damage to a customer’s vehicle.
There are several types of unique liability coverage. Bars and liquor stores should definitely purchase alcohol liability coverage if it’s not already required by the state. Administrative alcohol liability insurance involves breaking liquor laws – failing to check IDs, selling to a minor, or letting inebriated people keep drinking. Civil liabilities can involve lawsuits from the inebriated or those possibly victimized by the inebriated, and criminal liquor liabilities involve the unfortunate situations where someone receives alcohol from your bar and then injures or kills someone.
Two completely different types of commercial liability insurance include landscaping insurance and technology insurance. Landscaping and gardening companies should protect themselves against any injury from daily hazards in the landscaping business, like tools and equipment, pesticides, and more. Technology policies cover any of the potential liabilities that technology and IT professionals may face in a rapidly changing field.
Businesses Need To Be Insured
If you own a business, chances are you need to purchase some form of commercial insurance to protect yourself and your company. Contact a professional today to find out about the options available.