Every business needs commercial insurance to protect themselves and their employees. But no two businesses are the same. Every business will have a different insurance plan, not to mention different types of insurance that are crafted based on their business needs and goals. Although there are dozens of types of commercial insurance offered by insurance agencies, there are five that are essential no matter what type of business you run.
Note: the type of insurance your business is required to carry can vary from state to state.
#1: Commercial Liability Insurance
Commercial liability insurance, which is also known as business liability insurance, generally protects the assets of a business should the company be sued as a result of an incident that leads to bodily injury to someone else. This can include customers, visitors, etc., or even their property. It can also cover copyright infringement and other incidents depending on the policy that is created.
#2: Property Insurance
Commercial property insurance, which is also known as business property insurance, generally covers the physical assets of your business. Everything from the buildings and real estate you own to the equipment and tools your business uses can be covered. This can also include all furnishing and fixtures, computers, signage, documents, etc.
Commercial property insurance can only pay out if property is damaged, many plans will also provide payments based on income lost if a business is forced to suspend operations.
Learn more about commercial liability and property insurance here.
#3: Commercial Umbrella Insurance
Commercial umbrella insurance is a type of extended insurance plan that supplements a commercial liability policy. It can cover things that exceed the limits of your liability policy, or gaps in your other commercial insurance plans. These extensions are relatively low cost and add extensions that further protect your business.
Learn more about commercial umbrella insurance here.
#4: Errors and Omissions Insurance
Errors and omissions insurance is commonly known as Professional Liability Insurance. It protects your business from lawsuits that result from harm being done to a customer, etc. The main difference is that errors and omissions insurance specifically covers situations where an error/mistake or an omission or negligence has allegedly taken place. This insurance is ideal for service careers.
Learn more about errors and omissions insurance here.
#5: ERISA Insurance
While technically a surety bond, ERISA (Employee Retirement Income Security Act) insurance provides protections for those with pension plans in the private industry. ERISA insurance protects the employees of a business or organization by safeguarding their assets in the event that their employers commits a dishonest or negligent act that financially harms them.
Learn more about ERISA bonds (insurance) here.
Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.
Need help creating a commercial insurance plan for your business? Get in touch with the commercial insurance experts at The Patrick J. Thomas Agency today.