Commercial Insurance Buying Guide

  • Published Jul 07, 2020

As a business owner, you know that countless factors go into running your business. From keeping day-to-day tasks going to weighing important business decisions that affect your customers, your employees, and your bottom line, there are many moving parts. But regardless of industry or size, one consideration that all businesses must prioritize is commercial insurance.

What Is Commercial Insurance?

Most of us are familiar with personal insurance policies. Whether it’s renters insurance, homeowners insurance, or car insurance, most of us have experienced the benefits and peace of mind provided by personal insurance policies. Commercial insurance policies offer similar protection and coverage to business owners, their businesses, their property, and their employees.

Commercial policies do so by protecting business owners and employees from potential financial losses such as lawsuits, customer incidents, on-the-job employee injuries, damage, theft, and more. Like personal insurance, commercial insurance has conditions and terms that policyholders should know in order to best understand their coverage, such as exclusions, policy limits, deductibles, and premiums.

Types of Commercial Insurance

There are many facets of commercial insurance, each of which serves a specific purpose and offers protection for different circumstances.

  • General Liability Insurance. Liability coverage for businesses protects them in the event that (a) someone is injured on the business property due to negligence, (b) damage is caused to another’s property due to business negligence, (c) damage is experienced as a result of your product, (d) slander and defamation lawsuits are filed against your business, and/or (e) any third-party lawsuits occur as a result of the incidents listed here.
  • Property Insurance. Commercial property insurance protects property such as land, building, and the assets held within from physical damage, theft, natural disasters, and fires. Additional coverage can be added to property insurance to ensure other specific assets or wages are protected.
  • Errors and Omissions Insurance. Typically used in legal, insurance, and tech industries, errors and omissions insurance covers businesses in the event of mistakes or inadvertent errors that cause injury.
  • Commercial Auto Insurance. If a business utilizes automobiles such as cars, trucks, or vans for business operations, commercial auto policies protect employees and property in the same way auto policies do for individuals.
  • Workers’ Compensation Insurance. Workers’ compensation policies offer benefits and protections in the event that an employee is injured on the job or experiences illness as a result of their job. In addition to covering employee medical expenses, workers’ comp typically offers coverage for lost wages and legal fees if the employee chooses to sue their employer for damages. Most states require businesses to carry workers’ comp insurance by law.

Choosing Insurance for Your Business

Now that you have a clear idea of the various commercial insurance policies available to you, it’s time to assess your business and determine which of these policies are applicable to your unique needs. It’s also important to check your local state laws, because some states require that businesses maintain a minimum level of coverage for various aspects of their business, such as workers’ compensation.

Once you’ve chosen which types of commercial insurance are right for your business, research different providers and get multiple quotes. Many providers even allow business owners to buy their commercial insurance policy online, making things quick and easy.

Cerity — Faster, More Affordable Workers’ Compensation Insurance

At Cerity, we’re here to support business owners as they navigate the complicated world of commercial insurance. We know that for many businesses, workers’ compensation is a must. Whether your state requires workers’ comp coverage or you’re simply committed to protecting employees and your business, we can help you secure an affordable workers’ compensation insurance policy quickly and easily.

That’s why we offer a faster, more affordable, and more flexible way to get a workers’ comp quote — so you can quickly get the coverage you want and focus your attention on more important things like running your business. Get a free workers’ compensation quote with our free online quote tool.

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The information provided is intended to provide a general overview. This information is not legal advice and should not be relied on as such. Cerity® makes no warranties for the accuracy, adequacy, or completeness of the information provided, and will not be responsible for any actions taken based on the information contained herein. If you have legal questions or need legal advice, please consult an attorney.