A Guide to Commercial Insurance for Small Businesses

A Guide to Commercial Insurance for Small Businesses

If you own a business or are looking to start one, you need commercial insurance. 

Commercial insurance protects business owners against various risks that could impact their success. It’s designed to cover the business as well as its owners and employees and typically comes with higher coverage limits than personal insurance, as there’s more physical property at stake.

Commercial insurance plans can cater to different industries and specific day-to-day activities, and providers are typically knowledgeable about the unique threats and risks businesses are vulnerable to. 

Common Types of Commercial Insurance

Several commercial insurance types are available through specialty insurers, including coverage suitable for various industries, risks, and scopes of activity. Here are some of the most common that small business owners should consider.

General Liability

General liability insurance covers potential medical costs or legal fees associated with customer injuries. It can also go toward advertising injuries, including copyright infringement or libel.

Commercial Property Insurance

Commercial property insurance covers your building and its equipment and contents. It can also help offset negative profit-related impacts in the event that your commercial property suffers damage due to theft, fire, or natural disasters.

Workers’ Compensation

Some small business owners believe they don’t need to pay for workers’ comp. The reality is that workers’ compensation insurance is absolutely necessary for any small business.

If you don’t have a workers’ compensation policy covering your business, you risk paying millions to cover damages for injuries. Not having workers’ compensation leaves you, as the business owner, vulnerable to punitive damages, lawsuits, and medical bills that could ruin your company in a worst-case scenario.

Insurance companies offer robust workers’ compensation policies for small business owners, as workers’ comp is required in the state of Florida.

Commercial Auto Insurance

Commercial auto insurance works similarly to personal auto coverage. It covers you, your commercial property, and your employees in the event of transit-related accidents.

These policies are an affordable way to protect your business and minimize risk and can be especially beneficial if you or your team do a lot of driving as part of the services you offer.

Business Interruption Insurance

Business interruption insurance protects your business during specified covered events, such as hurricanes or floods, and can even replace lost wages or revenue.

This type of coverage can be majorly beneficial for Florida small business owners since Florida is notorious for turbulent weather.

Commercial Insurance

If you’re looking for commercial insurance, consider bundling the various types of coverage you need under a single insurer.

Bundling can offer significant cost savings and keep your policies in one convenient place, ultimately reducing the number of accounts, due dates, and coverage details you have to keep up with. And if you ever have to file a claim, having your policies under one carrier can expedite the process and make it easier on you.

Owning a small business can be stressful, but your insurance coverage should bring peace of mind, not overcomplicate things further.

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The above description(s) provide(s) a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.