What Exactly is Commercial Insurance?

So what is business insurance?

Simply put, commercial insurance is protection for your business. From new start-ups to well-established ones; an unexpected event could destroy your business if adequate coverage is not in place.

With so many insurance products and providers, it would be easy to think of commercial insurance as a complicated business. However, it does not have to be so. Commercial insurance can easily be broken down into 3 key areas:

Keep it legal

Certain types of coverage are required by law. Employers' liability insurance, which covers employee claims for accidents and illnesses they might suffer as a result of working for your business, is one type of coverage that must be purchased. You will also need to purchase at least one third party auto insurance for all motor vehicles used by the business.

protection

It is essential to make sure that you have the right coverage and the right protection. So take the time to find a policy (or policies) that give you exactly the level of coverage you need. Again, this doesn't have to be a complicated task if you break down your needs:

Insure your staff - many companies often depend on the people they employ. Insurance is available to protect the business in the event of employee incapacity for work. The types of coverage available include Keyman Insurance, Income Protection, Directors and Officers Insurance, and Private Health and Critical Illness coverage.

Insure common risks - certain risks are common to all companies. These include fires, theft and equipment failure. It is worth investigating (or having someone investigate for you) if common risks such as building and contents insurance, coverage of money and goods in transit, and insurance operating loss can be covered by an all risks type policy. It can save you time and money.

Specialized coverage - depending on your industry and needs, policies can often be bundled, some even industry specific with packages designed to cover specialist areas such as engineering or manufacturing. Other specialist coverages available include product and third party liability and professional liability coverage.

How to buy

Commercial insurance is most often purchased from an insurance broker. The advantage of using a broker is that they are insurance professionals who can recommend policies to you while researching the market to find you the best possible deal.

A good broker will provide you with personalized service and understand your needs and those of your business. When finding an insurer, it is often worth checking whether it is well established, has plans with major insurance companies, and offers local, personalized service.

If you follow these simple tips, there's a good chance you and your business will get the right coverage, protection, and peace of mind.