Commercial Insurance
Businesses of all sizes and sectors must account for various risks and exposures. Even experienced and diligent companies operating in relatively low-risk industries may eventually be involved in incidents from which they could accrue significant out-of-pocket financial losses. Fortunately, adequate commercial insurance may provide critical funds to insulate your organization from financial consequences.
What Is Commercial Insurance and Why Is It Important for Businesses?
Commercial insurance, or business insurance, is typically not acquired through a single policy. Rather, your company’s policy may consist of a collection of coverages that together cast a versatile financial safety net across many common risks and perils.
Although the specific coverage needs of your organization may depend on its unique circumstances, the following types of insurance may be advisable investments:
- General liability insurance—This coverage may help pay for third-party losses arising from incidents for which your business was responsible, such as bodily injuries, property damage and personal and advertising injuries (e.g., slander, libel, intentional copyright infringement, false advertising).
- Commercial property insurance—This component of commercial insurance, also known as business property insurance, may financially protect your company’s physical assets, including structures, equipment, inventory and furniture.
- Workers’ compensation insurance—Often required by law, this coverage may provide financial assistance following an employee’s work-related injuries or illnesses, such as by paying for resulting medical bills, replacing lost income and covering your organization’s legal fees if there is a lawsuit.
- Business interruption insurance—This coverage may compensate your organization for losses and ongoing expenses following a disruption of normal operations, such as reduced revenue, rent, employee wages and loan payments.
- Employment practices liability insurance—If your company is sued by a current, former or prospective employee for improper workplace practices (e.g., discrimination, harassment and wrongful termination), this coverage may help pay for resulting legal costs, such as attorney fees, settlements and judgments.
- Errors and omissions insurance—This type of coverage, also known as professional liability insurance, may insulate your company from financial losses if a client or customer accuses you of providing incorrect, negligent, late or otherwise inadequate services.
- Cyber liability insurance—This coverage may provide financial assistance if your organization is involved in a data breach or other cyber incident.
A suitable commercial insurance portfolio may be an essential investment, as lacking appropriate coverage could leave your business without the means to manage the aftermath of various incidents. Even a single accident or error could incur significant losses and expenses, and lacking commercial insurance could jeopardize your company’s finances and future.
What Types of Businesses Need Commercial Insurance Coverage?
All businesses should consider commercial insurance a top priority regardless of unique circumstances. An adequate portfolio may vary, but the financial protection provided by certain coverages, such as general liability, commercial property, workers’ compensation and business interruption, may transcend industry lines.
Your organization should work with a qualified insurance professional, such as those at Goal Insurance, to analyze your operations and identify additional coverage needs. For example, organizations that work with motor vehicles may be required to retain commercial auto insurance, and those with particularly high liability risk should consider securing commercial umbrella coverage.
How Are Commercial Insurance Premiums Determined?
Like its exact coverage needs, your organization’s commercial insurance costs may vary depending on its circumstances. Before being able to provide you with an accurate quote for adequate coverage, insurers must typically consider the following factors:
- Industry
- Location
- Number of employees
- Assets and revenue
- Years of operation
- Prior claims history
- Portfolio details (e.g., coverages needed, deductibles and policy limits)
Get the Right Coverage
Contact the dedicated team at Goal Insurance today to begin assessing your business’s commercial insurance needs and assembling an optimal coverage portfolio.