It is mandatory for all businesses to carry a form of insurance. However, some entrepreneurs may not be fully aware of the available insurance types, or may be wondering what is commercial insurance in general. It is basically coverage for different types of accidents. It can be broken down into three main categories.
Property insurance covers damages and losses that occur to your business property. This covers such occurrences as a fire that may have broken out in the building, however it does not cover all damages. There are additional coverage options that may be added to provide greater coverage, including:
- Tenant’s insurance
- Builder’s risk insurance
- Ordinance or law insurance
Liability insurance covers the costs of defending a company against lawsuits from third parties. There is general liability insurance and then there are specialty coverage options, such as errors and omissions insurance and malpractice insurance.
Workers compensation insurance protects employers by providing compensation to employees when they are hurt on the job. Usually employees are offered two-thirds of their normal pay.
So what is commercial insurance? It is a safeguard against a variety of different mishaps that a company might face. Having the right plan in place can protect a company against large financial losses. For more information and to find a plan that is right for you, contact your local provider today.