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What are the Different Categories of Commercial Insurance

Commercial insurance coverage is critical in helping businesses stay protected. Some types of commercial coverage protect against threats to reputation and well-being, while others safeguard financial matters. Commercial insurance differs from personal insurance in that it covers multiple stakeholders as well as employees. Accordingly, the coverage limits are higher because there is more physical property at stake.

Since there are so many different types of businesses, each with distinct characteristics and unique situations, commercial insurance is not one-size-fits-all coverage. It can be tailored to your specific industry and its related needs. 

YourPolicy commercial agents are trained to understand the risks that businesses like yours face every day. Following is information to help you understand the different categories of commercial insurance and how you can protect your business from unexpected events.

Commercial Insurance Categories

Business Liability Insurance

Business liability insurance protects you from risks that are common to almost every business, no matter what your industry. If a customer is injured at your place of business, potential medical costs and associated legal fees will be covered. This type of insurance also covers offenses like copyright infringement and libel. Business liability insurance is not typically required by law, but there are business owners who may need this coverage as part of license and certification requirements. 

Workers’ Compensation Insurance

Even in the safest and most secure workplace environments, accidents happen. Without Workers’ compensation Insurance, damages and costs can soar into the millions. When you compare the potential cost of a lawsuit to the cost of workers’ compensation insurance, it makes sense to be prepared for any accident resulting in injuries. This insurance covers any occupational sickness or accident that occurs during the course of employment. If you protect your business with worker’s compensation coverage, your employees relinquish the right to sue for negligence. 

Business Overhead Expense Insurance

This insurance keeps your business running when you are unable to work due to sickness or accident. Business overhead insurance reimburses you, as the business owner, for expenses incurred during a period of time when you aren’t able to perform at your best. Covered expenses include mortgage/rent, salaries, utilities, and, if applicable, malpractice insurance. Don’t risk your company’s success without this coverage. 

Professional Liability and Errors and Omissions (EO) Insurance

Depending on your business, professional liability insurance can also be known as errors and omissions insurance or malpractice insurance. Professional liability insurance covers you for certain situations that traditional business liability insurance does not. Businesses that typically purchase this type of insurance work directly with customers or provide advice. This includes, but is not limited to, medical providers, attorneys, brokers, and financial service professionals. 

Cyber Liability Insurance

Cyber security threats and data breaches are common in today’s digital climate. It’s essential that you protect yourself, your customers, and your employees from the risk of having their personal information compromised. Small businesses are prime targets for hackers and identity thieves because they don’t have the robust security of larger companies. Cyber liability coverage will protect businesses from some of the legal fees and customer notification costs arising from a data breach. 

Group Health Insurance

As a concerned employer, you want your employees to have access to medical care and prescription drugs, and you don’t want them to be overly concerned about high costs. A group health insurance plan gives your employees the comfort of knowing they can safeguard their health and that of their families. Without the worry of excessive healthcare costs, your workers will be healthier and able to focus on the job at hand.

Final Thoughts

If you’re thinking about the cost of commercial insurance, keep in mind that the cost of legal fees and potentially losing your business far outweighs the expense of a commercial insurance premium. Our well-trained commercial agents can structure a custom commercial insurance plan to fit your needs. Give us a call today so that we can give you peace of mind.