Commercial insurance is insurance of one’s very own business. Insuring our business is a smart investment and will be a life saver at the time of uncertainties. Commercial insurance provide cover for our business and makes it risk free. It is just like other insurance policies where we have to pay a certain amount of money as a premium and cover our belongings. Commercial insurance is on high rise and top insurance companies offer a range of commercial insurance products for different business requirements.
Usually higher premiums offer greater coverage. The premium amount depends on a number of factors namely natures of the business, size of the organization, type of industry in which the business operates, head count of employees, annual revenue or turnover of the business. Insurance companies evaluate the business that needs to be insured, previous records of the company and the inherent risk involved in the business. If the business is found to be risky, insurance will not be given or it may attract higher premiums.
There are 3 major types of commercial insurance namely property insurance, liability insurance and worker compensation insurance. Each has a different specification and business owners can avail any or all of these to cover their business from loss.
Property Insurance:
Usually higher premiums offer greater coverage. The premium amount depends on a number of factors namely natures of the business, size of the organization, type of industry in which the business operates, head count of employees, annual revenue or turnover of the business. Insurance companies evaluate the business that needs to be insured, previous records of the company and the inherent risk involved in the business. If the business is found to be risky, insurance will not be given or it may attract higher premiums.
There are 3 major types of commercial insurance namely property insurance, liability insurance and worker compensation insurance. Each has a different specification and business owners can avail any or all of these to cover their business from loss.
Property Insurance:
Property insurance covers losses and damages to personal properties including natural disasters like earthquake, landslide or flood, fire etc. A number of additional coverage can be got by paying a small amount of extra premium. These include machinery insurance, debris removal insurance, glass insurance and builder’s risk insurance. Most business owners opt for crime insurance which offers coverage over theft, and burglary.
Liability Insurance:
Liability insurance covers the injuries that our business might accidentally cause to business related third parties and losses arising out of it. This insurance should be taken by all business owners so as to save the huge cost involved in legal proceedings when the business is liable to third parties. Malpractice insurance, errors and omissions insurance covers the business by saving legal costs in the event of lawsuit being filed by victims or third parties for a wrong doing/unethical activity by the organization. This type of insurance is essential for doctors, surgeons and dentists as the chances of error are very high.
Workers’ compensation Insurance:
Workers' compensation insurance covers for on-the-job injuries of employees. This is the most common type of commercial insurance in manufacturing related industries. This type of insurance provides cover against negligence civil lawsuits being filed by employees. This insurance is very essential where employee head count is large and business involves higher chances of work related accidents. It is very essential that business should be insured and self assessment of business risk would prove to be beneficial to avoid expensive higher premiums.
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