Understanding Commercial Insurance

by Dov Waxman

Commercial insurance is termed as the insurance for business. The most important investment a business owner can make is the commercial insurance. It protects the business from any potential loss that is caused due to some unforeseen and unfortunate circumstances. Small businesses like one-person operations do not need commercial insurance.

Valuable protection against things such as property damage, theft and liability is necessary. The commercial insurance provides coverage for employee injuries and business interruption. If a person starts a business without insurance, he is at risk of loss of money and property if an unfortunate event occurs. Sometimes he may even use his personal money and properties at risk due to failing to secure adequate commercial insurance.

Commercial insurance can be of three types: property insurance, liability insurance and worker’s compensation.

Property Insurance:
Property insurance can be known as that insurance that provides protection for the loss and damage to personal and real property. For example, if a person insures a property insurance, he would be provided with protection for fire damage to his office place. Certain sub-categories of property insurance include boiler insurance, aviation insurance, builder’s risk insurance, earthquake insurance, business interruption insurance and ordinance or law insurance.

Liability Insurance:
Liability insurance is that insurance that covers the injuries that one causes to a third party. If a person sues an organization for personal injuries or damage of property, then the organization gets the cost of defending and resolving the suit through liability insurance policy. The common types of liability insurance includes public liability insurance; professional liability insurance; automobile insurance; errors and omissions insurance; and directors’ and officers’ liability insurance.

Worker’s Compensation Insurance:
This insurance helps in covering an employee’s injuries on-job. Businesses with employees require certain state laws for providing worker’s compensation insurance.

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