Introduction
You may be asking yourself, “What is commercial business insurance?” There are many types of Commercial Business insurance policies and they cover a variety of exposures.
Commercial Business insurance is measured in two ways: the “per occurrence” amount that enables you to track individual incidents, and the “aggregate” amount, which is the total protection limit for a policy. Below, we’ve listed the main types of coverage available for Commercial Businesses.
Worker’s compensation
A good way to protect your business is to carry workers’ compensation insurance. This type of insurance covers a broad range of issues, from medical costs related to work-related injuries to lost wages until an employee can return to work.
In some cases, it even covers the surviving family members of an employee who dies while performing their duties. In some states, employers are required to carry this type of coverage regardless of the number of employees.
The cost of this type of insurance can vary widely depending on several factors, including the number of employees, payroll, industry, and history of claims.
For example, workers’ compensation insurance costs about $0.47 per hour for a full-time employee who works 40 hours a week and over two thousand hours a year. That means an annual cost of $978. A business insurance agent can help determine the amount of coverage that is best for its needs.
The cost of workers’ compensation can vary significantly, especially in states with low benefits. In some states, such as Washington, employers are required to carry this coverage.
However, in Texas, employers are permitted to opt-out of the workers’ compensation system, though they must still provide protection to injured employees.
In addition to requiring employers to carry workers' compensation insurance, most states require non-owner employees to be covered. Failure to carry such coverage can lead to hefty fines and even the loss of business license.
Workers’ compensation insurance is an essential part of commercial business insurance for any business. Although it can be purchased through a standard insurance provider, a business that has a history of complaints may want to consider a state-administered program.
These policies tend to be more expensive, but they are necessary for companies that want to comply with the law. For example, your workers’ compensation policy cannot cover the costs of fines incurred as a result of OSHA violations.
Professional liability
A professional liability insurance policy is essential if you offer professional services. Also known as E&O coverage, it protects you from claims of negligence or professional errors. This type of insurance coverage is designed to protect your business and reputation from these types of lawsuits. Here are some of the key benefits to this type of coverage. Read on to learn more.
This coverage also provides legal support in the event of a wrongful termination lawsuit or credit monitoring. If you’re a web designer, this coverage protects your reputation by providing coverage for legal obligations due to negligence or professional mistakes.
Professional liability insurance policies are typically arranged on a claims-made basis, meaning that coverage will only be effective if claims were made during the period covered by the policy.
However, a typical policy will indemnify you for losses that arise out of acts or claims committed during the policy period. This means that incidents that occurred before the policy was activated may not be covered, though some policies will have a retroactive date.
Professional liability insurance provides protection for service providers against claims of negligence arising out of past services or work performed anywhere in the world. However, it will not cover you for damages or injuries to others, and you’ll need general liability coverage to cover that.
Nonetheless, this coverage is an important addition to any business protection plan. If you offer professional advice or services to clients, you may need both general and professional liability insurance. For example, you might need to carry a certain amount of professional liability coverage for your business, as clients require.
While most insurance companies are great for a wide range of industries, Hiscox has created an E&O insurance policy for a wide variety of industries, and allows you to customize the coverage to fit your specific risks.
Furthermore, they offer specialized insurance policies like cyber insurance and management liability. If you’re interested in professional liability commercial business insurance, make sure to consider signing up for a free two-week trial with them.
Property damage
Property damage is one of the many claims covered by a commercial business insurance policy. In most cases, this is because a covered event caused physical damage to tangible property.
For example, a fire might damage a business’s office building contents, or an employee might be negligent and cause a fire. However, some events are unavoidable, and property damage is covered under this type of policy.
Property damage is also covered by business insurance policies, but not all types. Several caveats are included in the policy that may limit the amount of money you can receive.
Understanding what exactly is covered will help you choose the most suitable policy for your business.
Property damage can result from many different events, from vandalism to natural disasters. Even wear and tear can lead to damage to commercial property. In order to determine whether your commercial business insurance policy will cover the damage, consider taking an inventory of your property.
You should also consider the cost of the coverage. Depending on your business type, you may find it beneficial to purchase an insurance policy that includes a deductible.
This deductible is based on the replacement value of your property, and will reset with each damaging event. If you own more than one building, you can choose a lower deductible. If you don’t have any property damage coverage, you should consider purchasing an additional insurance policy to cover the costs.
If you lease properties to tenants, it is generally recommended that you get lessor’s risk insurance.
Commercial general liability (CGL) insurance protects your business against third-party claims for bodily injury, property damage, and advertising injury.
This type of insurance provides legal defense, investigation, and settlements in the event of a lawsuit. Some policies combine these types of insurance to save you money. The benefits of bundling them are obvious. You’ll be saving money and time by buying these policies together. You’ll also be reducing the risk of fraud.
Employee injury
When your workers are injured on the job, your company may need to pay their medical bills. Even the safest workplace can lead to injuries. If your business does not have workers compensation insurance, you will be responsible for paying their wages while they are out of work.
This insurance helps you avoid the hassle of paying these costs out of your own pocket. This type of insurance is usually bundled with property insurance. Here are some reasons why your business may need this coverage.
General liability insurance covers property damage, advertising injuries, and bodily injury claims. It also covers the cost of defending lawsuits. General liability insurance does not cover work-related injuries, but it can help cover the costs of medical bills and other expenses.
Workers’ compensation insurance also provides benefits to injured employees. Depending on the type of insurance you choose, it can be a valuable addition to your business. To find out more about the types of policies available, click here.
Workers’ compensation insurance covers any medical bills for employees who are injured at work. In most states, workers’ compensation is required by law. It pays for medical bills and other related costs, as well as lost wages until the employee is able to return to work.
If the employee dies on the job, this coverage can also cover the surviving family members of the deceased employee. It is important to consider the extent of coverage for both types of insurance before choosing a policy.
While general liability and workers compensation insurance are essential for protecting your company from third-party claims, they aren’t the same. If you own a business that provides services to customers, it is important to ensure that your employees are covered from workplace accidents.
It is also important to know how to best protect your business from these claims. In addition to protecting your employees, general liability insurance covers property damage. When a third-party sues you, your insurance coverage will help you pay for your legal defense and any damages.
Business interruption
While it can be difficult to afford insurance for your entire business, you may want to consider getting business interruption insurance. This type of coverage can help pay for the cost of relocating your company to a new location, as well as any operating expenses you incur as a result.
You may even find that your business insurance coverage extends to the costs of replacing machinery and office supplies. In addition, this coverage helps you pay the costs of retraining your employees, as well as other extra expenses.
When determining whether or not you should purchase business interruption coverage, you should keep in mind that the policy will only provide coverage if the covered event results in property damage or a shutdown of operations. However, it will not cover closures resulting from natural disasters.
The time period between the event and repair is called the restoration period. In the event that you need to claim your business income, you will be reimbursed for the amount of lost revenue during this period.
There are many types of business interruption policies, and choosing the right one depends on the needs of your business. Some policies cover closures due to an infectious disease, while others cover the costs of hiring a replacement while the premises are closed.
The communicable disease rider will cover closures caused by the coronavirus but not by the flu virus. The communicable disease rider covers this risk as well, but it will be necessary to prove that a disease was present on the premises.
While business interruption insurance is not available separately, it is a popular inclusion in a property policy or a business owner’s policy. It is essential to understand what this coverage covers, as it may take a long time to recover from a major disaster.
However, most business interruption policies will have a waiting period deductible of up to 72 hours. Insurers may request a shorter response period if you pay a higher premium.
