Commercial insurance, also called commercial general business liability, protects company assets and liability items, such as a customer’s medical bills if they’re injured on company property or by you or your employee. It may also cover attorney and settlement costs, if someone sues the company successfully, or if you, as a commercial tenant, cause damage to your landlord’s property, and against claims of libel, slander, false or misleading advertising, and/or copyright infringement. You may need additional coverage if the initial liability coverage amount is low. You can purchase commercial general business liability insurance separately or in a business owner’s policy (BOP) that also includes property insurance which covers damage or loss to real and personal property on business premises.
Two important items not covered by commercial insurance, employee travel, and commercial vehicles, require separate policies. You need auto insurance on each commercial vehicle your company operates. Just like the auto insurance you purchase for your personal vehicle, the level of coverage depends on your choice. Check with your state department of motor vehicles to find out the minimum coverage required, but it’s smart to go beyond that. Obtaining all coverages means carrying liability, collision, comprehensive, personal injury protection, medical payments, uninsured/underinsured motorist and rental reimbursement.
Your company may also need inland marine insurance. It covers both property in transit and other people’s property in your company’s possession – whether in a commercial vehicle, at your place of business, or in the possession of an employee.
Business interruption insurance covers lost income and company expenses resulting from property loss or damage. This applies to your place of business and vehicles.
Every business needs commercial insurance, but it doesn’t cover everything. Talk with THINK Insurance & Financial Services to determine the best coverage for your business.