A Guide to Buying Commercial Insurance: What You Need to Know?

 Commercial insurance is a very important part of running a business. While it may seem like it's not the most exciting thing to think about, without commercial insurance, your business can suffer major losses from issues such as fire and theft. Business insurance covers the three aspects of owning a business: property, people, and liability. This guide will discuss these three areas in detail, so you know exactly what you need for your company.

1. Property Aspect:

Generally, commercial property insurance covers the building and its contents—the things you own, like desks, computers, machinery, and inventory. When you're evaluating a commercial property policy, make sure to look at all the different types of property your company may have—such as office equipment or machines, operating equipment like computers/software, supplies like paper and toner, merchandise, and food.

Commercial property insurance provides coverage for various risks to your commercial business, including loss or damage to your business’ building or other properties due to fire, weather damage, vandalism, or theft.

2. People Aspect:

Business insurance provides workers compensation which covers all work-related injuries, illnesses, and diseases that occur among employees and are caused by their work. There are three types of workers' compensation in the US:

· FELA is the federal employees' liability act which covers railroad employees' injury and occupational diseases.

· State workers comp covers all other employee's injuries and occupational diseases. This type of law varies from state to state.

· Comprehensive general liability insurance (CG) is a form of commercial general liability insurance policy that covers bodily injury and property damage done to third parties by your business operations.

3. Liability Aspect:

Commercial Insurance provides liability coverage to protect your business and its assets if you, a member of your organization, or an employee causes bodily injury or property damage to someone else.

Commercial liability insurance policies protect against injuries and damages caused by the insured business' negligence, but some policies may also cover intentional acts. Commercial auto insurance also protects from the auto liability of businesses. In addition to general liability, businesses can purchase coverage for products and completed operations liability, covering losses resulting from faulty workmanship.

 

When it comes to buying commercial insurance, you need to know exactly what you're paying for. Commercial insurance is not the same as auto or home insurance. If you are confused about the different types of insurance services in Elkhart and which commercial auto insurance in Noble County your business needs, contact Ron Davis Insurance and Bail Bonds today for help!