Commercial Insurance Needs For Business

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Business owners all know that starting up a business takes many things; one of these is commercial insurance. Business start-ups usually have a hard time trying to determine the amount or type of commercial insurance their business needs. Commercial business insurance can give you needed protection against theft, property damages, liability, business interruption, injuries at the business, and other items. Failing to secure enough commercial insurance causes business failure.

Different Types Of Insurance

There are three most common types of commercial insurance for business. These are property, liabililty and workers’ compensation insurance.

Property Insurance

This type of commercial business insurance covers losses due to damage of real property. Examples of this would be fire, flood, and machinery destruction. There are different forms of this type of commercial insurance for business.
Mechanical breakdown coverage – often labeled “equipment breakdown coverage”, this type will usually cover losses from the accidental breakdown of boilers, machinery, and other equipment. This coverage is good for computers.
Debris removal coverage – this type of coverage deals with removal of debris after a disaster such as fire, flood or windstorm. This is the insurance that allows you to remove the remains of the old structure before building the new.
Builder’s risk insurance – this is what covers the building while being constructed. In case of a building collapsing during construction this insurance kicks in.
Glass insurance – this is most used by retail business and covers the glass windows of the building.
Inland marine insurance – this is the insurance which covers property which is in transit or other persons property while on your premises.
Business interruption insurance – this is what covers lost income and expenses which result from property damages or loss. This is the insurance that covers salaries, taxes, rent and net profit for the time the business is closed.
Tenant’s insurance – most often used in conjunction with commercial leases which covers the damages to improvements you have made to the rental space.
Fidelity bonds – this insurance is used to cover losses from a bonded employee’s theft of property or money.

Liability Insurance

Liability insurance is commercial business insurance covering injuries that you cause to third parties. If you are sued for personal injuries or property damage, the costs of the legal actions and work would be covered by this insurance. More specialized liability insurance is listed below.
Errors and Omissions – this insurance covers accidental mistakes or failures which cause injury to third parties. An example would be someone failing to file proper forms or applications completely or not on time.
Malpractice insurance – this type of insurance is most commonly used by doctors, attorneys, accountants, architects and other professionals. It is used when a third party suffers injuries from someone whose conduct falls below the professional standard of their field.
Automobile insurance – this covers all of the vehicles which are owned and used by your business.
Directors’ and Officer’s Insurance – this insurance is most used by corporations and nonprofits to cover the cost of legal action taken against their directors or officers.

Workers Compensation Insurance

This type of commercial business insurance is also listed as commercial disability insurance. This is the insurance which is used to cover employee injuries on the job. Workers Compensation is usually required by state law for any business with employees.
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