Commercial business insurance is a must-have for small business entrepreneurs. Never commit the mistake by thinking that just because you are running a small business means that your risks are lower and you can go without any insurance protection to save on cost. Wrong! It can be costlier to run your small business without the necessary insurance protection.
What Business Insurance Are For?
Commercial business insurance is meant to transfer the risks that you will normally find very difficult, if not improbable, to shoulder yourself to your insurance provider for a certain amount known as insurance premium. This premium is a risk that you can conveniently afford since it is not refundable when you do not make any claim within the period of coverage.
Entrepreneurs who are starting their respective businesses will find that apart from their legal and accounting needs, meeting their insurance needs is one of their priorities. This is to avoid and prevent uncontrollable risks that may be hard for anyone to recover financially. Several types of commercial business insurance policies are available, and an entrepreneur has the option to get these policies individually or get an umbrella policy that will cover most of the basic protection one needs.
Two Common Types of Business Insurance
There are two common types of commercial business insurance policies. One is the property insurance and the other is the liability insurance. Each of these two types has their own variants or related insurances, and they can come as a combined protection under an umbrella insurance policy.
Business property insurance is the type of commercial business insurance policies that cover for any losses on the following:
- Building – you need to insure your property when you are the owner of the building where your business is located. If you are renting or leasing the place, it is the obligation of the property owner to insure the building;
- Content- this covers for the equipment, furniture, and fixture and other properties you own in the building that you use to run your business. If you rent or lease the place, it is most appropriate to have your contents insured.
- Income- this insurance coverage protect you against business interruption resulting to loss of your income. For instance, if the building is razed by fire, the insurance will pay for the income you are supposed to earn on the duration if you have this kind of protection.
- Injuries and damages from the use of the products or services;
- Personal or advertising damages or injuries;
- Negligence resulting to damage or loss of property of your landlord;
- Compensation insurance coverage;
- Health insurance programs or plans;
- Company vehicle insurance; and
- Other insurances such as life, medical, employment practices, excess liability.