FAQs

There are various types of commercial insurance, including:

• General Liability Insurance: Covers injuries and property damage caused by the business or its products/services.

• Commercial Vehicle Insurance: Protects vehicles used for business purposes.

• Workers' Compensation Insurance: Provides benefits to employees injured on the job.

• Employer’s Liability Insurance: Covers claims made by employees against the employer.

• Flood Insurance: Protects against damage caused by flooding.

• Professional Liability Insurance: Covers errors and omissions made by professionals like accountants or consultants.

• Errors and Omissions Insurance: Similar to professional liability but tailored for specific professions.

• Directors and Officers Insurance: Protects executives from personal losses if they are sued for decisions made while managing the company.

Commercial insurance is not universally mandatory, but it is strongly recommended to protect your business from lawsuits and financial losses. Certain types of insurance may be required by law or licensing authorities:

• Commercial Vehicle Insurance: Required if your business uses vehicles.

• Workers' Compensation: Mandatory in most states for businesses with employees.

• General Liability Insurance: Often required for specific licenses or contracts.

• Bonds: Occasionally necessary for specific industries

Commercial insurance is specifically designed to cover a business and its assets, offering higher coverage limits than personal insurance. Since businesses often face greater risks, such as lawsuits targeting their financial resources, higher limits and more comprehensive policies are recommended.

General liability (GL) insurance covers claims related to injuries or property damage resulting from the business’s operations, products, or services.

Professional liability insurance protects businesses like insurance agencies, accountants, or consultants against claims arising from errors, omissions, or professional mistakes.

In some cases, commercial insurance may cover natural disasters, but specific coverage depends on the policy. For example, flood insurance is often purchased separately.

Business interruption insurance helps cover lost income and ongoing expenses if a business has to close temporarily due to events like storms, fires, or other covered damages.

The cost of commercial insurance varies depending on several factors, including the type of business, its risk level, location, and the specific assets being insured. Each policy is tailored to meet the unique needs of a business. For an accurate estimate, contact an agent for a quote.

Determining the right coverage involves consulting with an insurance agent. They will assess your business’s operations, risks, and needs to find the most appropriate policies and protections.

While bundling multiple types of commercial insurance with one provider was more common in the past, agents today often seek the best coverage at the lowest cost, which may involve using multiple carriers to achieve optimal results.

Commercial insurance typically excludes personal property and personal liability. Agents aim to minimize exposure and ensure that your business has adequate protection against potential risks.

Start by contacting your insurance agent. They will guide you through the claims process and recommend the best course of action based on your specific situation.

Yes, filing a claim can increase your premiums because it raises your perceived risk level. Unfortunately, this is a standard practice across the insurance industry.

It’s advisable to review your commercial insurance policy annually with your agent to ensure it continues to meet your business’s needs.

Yes, even home-based businesses require insurance coverage. The types of coverage needed will depend on the nature of the business, associated risks, and whether customers or clients visit your home.

Absolutely. In today’s digital age, any business that handles personal or sensitive information should strongly consider cyber liability insurance to protect against data breaches and cyberattacks.

Product liability insurance is essential for businesses involved in manufacturing. It may also be necessary for other industries depending on the risks associated with their products. Manufacturers should always carry this type of coverage without exception.