Getting the Right Commercial Insurance for your Business

If you own a business, not having commercial insurance  can be equated to gambling.  With all the things that could go wrong in a business plus the lawsuit-happy society we live in today, getting commercial insurance is a real necessity to protect you from unforeseen disasters and damages.  And like so many other things in life, you get what you pay for.  Going with the cheapest insurance policy you can find may seem like a money saver, but such a policy is unlikely to give you adequate coverage when you need it most.  So unless you are sure your business can withstand all foreseeable disasters, it's best to get a plan that covers the things that could go wrong.  Of course, if you are only getting coverage because it's required and aren't afraid you might have to pay for insurable problems out of your own pocket, going with the cheapest policy may be the way to go.

Commercial insurance of the business property type is much like the insurance policies people take on their houses.  It will pay for some or all of the damages you physical property could sustain.  As with all facets of insurance, you must make sure of what is actually covered as this can vary widely between different policies.  It can actually be quite complicated, especially if you want specific coverage for certain things.  It all depends on the size and type of business you have, but there are lots of the considerations for what you may need in the event of an accident.  For example, there is insurance to cover equipment breakdown, which will usually reimburse you in the event of property damage and having to put your business on hold because of it.  There is also debris removal insurance, which will pay for the cost of removing the remnants of a building destroyed by fire, for example.  This is an example of something specific which most people wouldn't think about, but is a part of the cost of recovering from a disaster. 

Commercial liability insurance protects you in the event that something goes wrong either in your place of business or involving your product.  This would allow you to stay in business in the event a customer tried to sue you.  Without insurance, besides having to pay a lot of money in legal fees, you may even be forced to halt normal business operations until the lawsuit is settled.  Nowadays the mentality of making a quick buck through frivolous lawsuits is a common occurence and it is important to be on guard against this.  One well-known example of liability insurance is malpractice insurance, also known as professional liability insurance.  This type of insurance protects a professional, often a doctor, from being sued for substandard performance in their field.  Such policies will usually pay for defense fees in court and for any settlement rewarded as well.  This insurance is also commonly used by dentists, architects, accountants, and others in professional fields. 
Errors and Omissions is another category of insurance, and one often needed by businesses in order to prevent customers from suing in the event of damages caused by errors on the part of your company.
Another type of liability insurance is commercial vehicle insurance, also known as commercial auto insurance.  This resembles normal, private auto insurance, but is specific to the business you are running.  This means you have to take into account how the vehicle is to be used and also who will be using it.  There will probably be many unique uses depending on your business, so you should make sure you get coverage for everything you think you might need it for.  Many small businesses need a slightly larger vehicle, like a van, and end up getting commercial van insurance or commercial truck insurance.  With this coverage, you can be reimbursed in the event that your company vehicles are involved in an accident or if they are damaged or stolen.  You can also be protected if the driver of the vehicle causes injury to another person or property. 

The third component of a complete commercial insurance policy is worker's compensation insurance.  Where liability insurance is for customers, worker's comp is for your employees in the event they are injured on the job.  What coverage you are required to get can depend on factors like the laws of your place of residence and your business's history of injuries.  You might be required to pay for medical bills and compensatory wages for days they are not able to work, as well.  The main benefit is that worker's compensation insurance will do much to stop an employer from being sued by an employee.   

It is possible to get a free commercial insurance quote either from online sources or from an insurance company.  You will need to provide information like the total number of employees in your company, and how many are full or part timers.  You also need to know your business entity, the approximate annual revenue of your business, how many years it's been running, and your company's industry.  You will be asked when you want the plan to take effect, and whether it is for a one-time and/or  seasonal event.