The Importance of Commercial Insurance for Your Business

Whether you are starting a new business, or have been an owner for many years, commercial insurance is one of the most critical investments you can make. Operating a business comes with various risks, and without the right insurance, a significant financial loss can have a devastating impact. Here’s why commercial insurance is essential for your business:

Protection Against Common Risks

Commercial insurance can protect your business from common risks, including:

• Property Damage: Covers losses from fire, theft, and other disasters.
• Liability: Protects against legal claims for bodily injury or property damage that your business may be responsible for, including claims that may arise from a product you manufacture, and/or a service you provide.
• Business Interruption: Provides financial support if your business operations are halted due to a covered loss. Financial support can include payroll, utility bills, rents and/or mortgage. 
• Worker Injury: Workers compensation insurance covers medical expenses and lost wages for employees injured on the job.
• Commercial Auto: Covers the commercial exposure from owned, rented, or borrowed vehicles used in your business. 

Financial Stability

Could your business withstand a demand for payment of $10,000? What about $100,000? Or even $1,000,000? What about the legal fees that may be associated with defending such a claim? Having the appropriate commercial insurance coverage can mean the difference between going out of business after a severe loss or recovering with minimal disruption. It ensures that you can maintain financial stability and continue operations even after an unexpected event.  

How to Purchase Commercial Insurance

One of the first steps in securing commercial insurance is to contact a licensed insurance broker-agent specializing in commercial coverages. A reliable broker-agent can provide expert advice tailored to your business needs, making them an essential part of your business plan, similar to an accountant or lawyer.  Look for an experienced broker-agent that has worked in this arena for a number of years, and is willing to provide honest feedback to help guide your business.

Understanding Policy Premiums

The premium for commercial insurance policies is calculated based on various rating factors, including the type of coverage, the size of the business, and the selected deductibles. Discussing these factors with your broker-agent can help you choose the right coverage while managing costs effectively.

Claims Process

In the event of a loss, your broker-agent should be able assist you throughout the claims process. Timely reporting and proper management of claims are crucial, especially for complex commercial claims that can involve high stakes and potential litigation.  

Conclusion

Investing in commercial insurance is crucial for safeguarding your business against unforeseen risks. It provides peace of mind, financial protection, and ensures that your business can thrive even in the face of adversity. To learn more about commercial insurance and how it can benefit your business, download the full Commercial Insurance Information Guide PDF.

For more information or to discuss your commercial insurance needs, contact Schaub Insurance Agency Inc. today.