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What commercial insurance does my business need?



Commercial insurance is far from one-size-fits-all, but there are exposures that almost all businesses have in common. Whether you are an accounting firm or a web technology company, have a “solopreneur” space or a multi-story building filled with hundreds of employees, understanding your company’s exposure plays a key role in effectively protecting your business.

In this article, we reveal the five factors you should consider when deciding which commercial insurance is right for you, and explore the most common types of coverage for businesses.

What commercial insurance does my business need?

Consider these five key factors when deciding which commercial insurance or policies your specific organization should invest in:

  1. Regardless of whether you own or rent your office space
  2. The type of services you provide
  3. The location of your physical office
  4. Regardless of whether clients or customers visit your premises
  5. Whether you keep cash on site or not

Below, we examine some common policy types that address these variables and reveal why they are important considerations for any business.

What is the most common commercial insurance policy?

The five commercial insurance policies most commonly used by businesses include general liability coverage, commercial property insurance, cyber insurance, commercial auto insurance, and employment practice (EPL) insurance.

Review them and what they cover below.

1. General liability coverage

A general liability policy is essential for businesses of all shapes and sizes.

If you own the building your business operates out of, this insurance protects the well-being of your customers, as well as anyone using your parking lot, sidewalks, or common areas. If you’re renting your space, your lease likely only provides liability coverage and names your landlord as an additional insured.

At the highest level, general liability coverage protects your business against lawsuits and subsequent financial damages it may suffer.

These lawsuits can be based on bodily injury, property damage, personal injury (such as defamation, slander, invasion of privacy, etc.), advertising damages, etc. Although they most often arise due to injuries that occur on the business premises themselves, lawsuits can also arise due to problems with ongoing operations away from business premises or operations or products your company has completed.

2. Commercial property insurance

If you own the commercial building that your business operates out of, it is important that you have building coverage called a Commercial Property Policy. This policy can provide protection against property and income losses resulting from a covered cause of loss, such as a natural disaster or burglary.

The property loss cover includes insurance on the building itself and the contents of the buildings as described in the policy. For this reason, business owners considering this type of coverage should take inventory of the building’s contents when determining their coverage amounts. Consider items such as office furniture, fixtures, equipment, employee personal property, art collections on display, accounts receivable, outdoor property, etc. when specifying this coverage.

3. Cyber ​​coverage

Any business that conducts its work online should invest in cyber coverage. Whether you are a technical organization that primarily works with online systems or a small business that conducts payment transactions digitally or stores customer data in an online platform, it is important to have protection in the event of a cyber attack today.

Did you know: More than half of US businesses have experienced a cyber attack in
the last year. Of companies hacked, 72% spent $5,000 to resolve the incident, with
more than a third spend over $50,000 in response costs.

Cyber ​​coverage offers multiple layers of insurance protection against the complex, ever-changing cyber risks that businesses face.

4. Commercial auto insurance

Commercial auto insurance provides coverage for your company-owned or leased vehicles.

Several factors determine the type and cost of commercial auto insurance. These include but are not limited to:

  • Business Class (NAICS Code)
  • Territory
  • Business Use
  • The radius of the business
  • Size, age, liability limit and new cost for each vehicle

Most commercial auto insurance policies provide both property coverage (which protects against damage to your vehicle) and liability coverage (which protects against bodily injury to others and damage to their property.)

Insurance can be expanded to include additional coverage for medical payments, uninsured motorist coverage, personal injury coverage, employee car use on behalf of the employer, and more.

5. Employment Practices (EPL) insurance

Employment Practices Liability (EPL) insurance helps protect employers from claims by employees alleging wrongful termination, discrimination or harassment. This insurance typically helps cover liability or defense costs in the event of a covered claim.

In addition to the insurance itself, those who purchase EPL insurance through Central also get access to a range of useful resources. These include experienced EPL claims specialists, legal support from specialist employment lawyers and a loss prevention website with sample employment policies and procedures, information on the law and advice to help you prevent or minimize employee complaints.

Business-specific policy options with Central

While the five types of insurance policies explored above are some of the most common among commercial policyholders, top-tier carriers like Central recognize that there are many other unique types of coverage that a business may need.

That’s why Central has developed a range specialty program for business of all shapes and sizes, including service companies, wholesalers, car service and repair shops, dealers, contractors, office managers and much more.

In addition, Central offers a range of commercial policies that nest strategically on top of some of the more general coverage options described in this article. These include but are not limited to:

Inland marine insurance: This policy protects property in transit, computer equipment and data, contractor equipment, art and buildings under construction.

Crime insurance: This policy protects against burglary, robbery and theft by employees.

Workers’ compensation insurance: This policy helps cover your business in the event of an employee accident on the job.

Pollution liability insurance: This policy protects your business from the effects of an accidental pollution-related event.

Take the next step

Now that you have a better idea of coverage your business may need, it’s time to start the conversation with your insurance agent. They will have opinions, experience and data to help shape your decision, and together you can ensure you buy the perfect cover for you.

The above information is of a general nature and your policy and the policies provided may differ from the examples provided. Please read your entire policy to determine your actual coverage.


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