What is commercial business insurance?
Commercial business insurance is coverage for businesses and corporations that is created to cover a business, its owners, and employees. Corporations and businesses of all sizes and industries rely on commercial insurance to address potential risks that may threaten the success of company. Risks may include employee health and safety, property condition, third party injury liabilities, reputation, cybersecurity, and more. The insurance policy can provide a financial resource that covers both employees and stakeholders, though the premium costs and coverage are much higher due to the greater liability exposure.
Business insurance plans are tailored to the unique needs or risks that the industry, environment, or geographic location present. Day-to-day activities are a factor in the underwriting process, as is the size of the company, any prior claims that have been filed, and any mandated coverage requirements.
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When do I need to be aware of commercial business insurance?
Some commercial coverage is mandated by law, while other policies are purchased at the discretion of the company. Commercial agents specialize in recognizing priority risks. There are some other important items you should know about commercial business insurance:
- Workers’ compensation insurance is required by federal law for certain businesses and classifications of employees.
- A business owners policy combines several commercial coverages into one policy for a more comprehensive insurance solution.
- Automotive insurance is required by state-level agencies, though businesses should consider the benefit of adding a hired non-owned endorsement to the commercial line.