Running a business can be stressful and complicated, especially if you are working with limited funds. When you are trying to save money by cutting back on unnecessary expenses and costs, you may be tempted to cut some of your insurance coverage. If you find yourself asking “what is commercial insurance, and do I really need it?”, here are some things you should know about this imperative type of coverage.
Commercial Insurance Offers Broad Protection
Unlike some types of insurance that offer financial protection for very specific and rare circumstances, commercial insurance offers very broad protection for a wide variety of risks that most businesses face every single day. Some of these risks include damage to personal property from fire and other natural disasters, damage from theft and vandalism, employee injury while on the job, automobile accidents, and errors and omissions.
If your business has any risk at all of experiencing some of these common situations, then you need to make sure you have adequate commercial insurance coverage to avoid facing serious financial repercussions.
What Is Commercial Insurance?
Commercial insurance can be split into several large categories that include: crime and fidelity, directors’ and officers’ liability, business auto, cyber liability, surety bonds, excess liability, commercial property, worker’s compensation, and group health benefits. If you feel like you only need certain types of commercial insurance coverage, be sure to talk to your insurance agent about creating a custom-designed commercial policy for your specific needs.