Commercial Insurance for Your Business
One of the most important investments you can make when starting a new company is purchasing commercial insurance. It will protect your company from a drastic loss in finances and can make the difference between sinking or swimming in case of a lawsuit or damages. It’s imperative to know and understand the different types of commercial insurance available and work with a respectable agent to create the policy that will work best for your business.
Significance
The significance of commercial insurance is extremely important for small businesses because it protects you from common losses including employee injury, liability, theft, and property damage. If you have an adequate amount of insurance, companies can be able to recover from these losses easier. You risk going out of business without it.
There are three main types of commercial policies. They include workers’ compensation, property insurance, and liability insurance. Liability insurance protects you from damage inflicted by your company on any third parties. It covers property damage and personal injury lawsuits as well as any injuries your employees might experience. Property insurance covers damage to workplace property like flood or fire damage. Workers’ compensation protects you in case any of your employees become injured while on the job. It prevents employees from filing any negligence lawsuits for injuries sustained in the workplace. There are other specialized types of coverage that can protect you from any business-related liabilities.
Considerations
It’s always best to work with an agent who has lots of experience in commercial policies. A good relationship with your agent can help you make a sound decision on which policy will work best for your company. Agents will usually discuss common losses you might experience within your company and present some coverage options based on what kind of business you have. Be sure you ask questions about anything you may be unclear about including specialized information, conditions, or terms. You and you alone are responsible to make this important decision on the insurance that will work well with your company in the long run. Having good communication with your agent is essential.
Warning
Contact your insurance company right away if a claim arises so that an investigation can be done as soon as possible. Commercial policy claims are a lot more complex than individual insurance claims. Having a quick assessment is important with high-cost liability claims. Don’t ever try to handle these claims by yourself. Report them to your agent so that your insurance contract won’t be violated.
Insight
As your business grows, your insurance needs are likely to change. Be knowledgeable about the different types of commercial policies that are available to you. Look into additional coverage when new things arise.