Commercial insurance is designed to protect your business from certain risks. These include theft, damage to property, injuries on the job, lawsuits and health care costs.
Unlike personal insurance, which is one-size-fits-all, commercial insurance is specifically tailored to the needs of your specific business and day-to-day activities. That’s why it’s important to discuss your coverage options with a licensed broker-agent who specializes in commercial insurance.
Commercial auto insurance
Business auto insurance is an important part of a business owner’s insurance portfolio. It can cover a variety of vehicles, such as food trucks, delivery trucks, semitrucks and more. It can also be used to insure vehicles that transport people for a fee, like limousines or those that transport hazardous materials.
Commercial auto policies are designed specifically for the needs of businesses, and they tend to have higher coverage limits than personal auto insurance policies. Many states require businesses to carry a minimum amount of auto insurance on their vehicles.
The cost of commercial auto insurance depends on the amount and type of coverage you choose, as well as other factors. Generally, it’s more expensive to insure a larger vehicle or one that has customizations than it is to insure a smaller car or a standard truck.
Liability for bodily injury and property damage is the most common form of coverage in commercial auto insurance. It can pay for the medical bills, legal costs and other expenses if your company is found liable in a claim.
Uninsured motorist (UM) and underinsured motorist (UIM) liability is an additional type of commercial auto insurance that can help cover the cost of damages if you’re hit by a driver who doesn’t have enough coverage to cover your losses.
Other coverages for commercial auto insurance include physical damage protection, which can help cover the cost of repairing or replacing a vehicle that was damaged in an accident. Rental reimbursement with downtime is another optional coverage that covers the cost of renting a replacement vehicle while yours is being repaired.
The driving records of the drivers who operate your vehicles can also affect the cost of your commercial auto insurance policy. Having poor driving records can result in high premiums or a denial of coverage altogether.
Commercial truck insurance
Commercial truck insurance is designed to protect your business from the costs of injuries and damages resulting from accidents. The type of truck insurance you need for your business will depend on the types of trucks you operate and the cargo that you transport.
Owner-operators who drive their own trucks typically need more extensive coverage than those who work for a motor carrier. OOIDA offers a range of affordable insurance products and can help you find the right policy for your needs.
The best way to buy commercial truck insurance is to compare quotes from several companies. You can use a tool such as CoverWallet to get quotes from reputable insurance carriers in minutes.
Progressive is the largest seller of commercial truck insurance in the United States, offering coverage for all types of vehicles and industries throughout the country. It also has a wide array of discounts for customers with a commercial driver’s license and those who bundle their business truck insurance with other policies, such as personal auto or homeowner’s insurance.
State Farm is another popular option for commercial truck insurance. Its extensive network of agents includes specialized trucking experts, which means you can get more detail about your coverage options when you speak with them.
Sentry Insurance is a large provider of trucking insurance, having been in business since 1904. Its commercial truck insurance department works with tens of thousands of drivers and is an allied member of various trucking industry groups.
There are many different types of commercial truck insurance, but each has its own set of benefits and features. You need to decide what type of coverage is right for your business, and how much you want to spend on it.
Commercial property insurance
Business property insurance helps to pay for the repair or replacement of your building, equipment and supplies. It also provides liability coverage if someone gets hurt or their property is damaged by your business operations.
You can get business property insurance through a commercial policy or a business owner’s policy (BOP). A BOP is sometimes less expensive than buying the coverage separately, but it doesn’t provide all the protection you need for your business.
A property policy usually includes direct damage insurance, time element insurance and additional expense insurance. If a covered peril causes your property to be destroyed or damaged, you can turn in a claim and the insurance company will replace your property with new property.
If you own more than one building, it may make sense to set separate limits for each individual property. This is called Scheduled Limits of Insurance and enables you to customize your limits, which can be a great way to lower the cost of your coverage.
The cost of your property policy will vary depending on the type of coverage you choose, the deductibles and how many buildings you own. You can also purchase a per-occurrence loss limit, which allows you to select an individual limit for each building.
Choosing the right property limit will determine how much cash you have to rebuild or replace your property after a loss. There are three main types of property limits: “replacement cost,” “actual cash value” and “functional replacement.”
The best property coverage for your needs depends on the unique exposures you face as a business. A professional broker-agent can help you determine what insurance products are best for your specific situation.
Commercial general liability insurance
If you’re a business owner, commercial general liability insurance (CGL) can protect you from the costs of lawsuits involving bodily injury or property damage caused by your business operations or employees. These claims could include accidents that occur on your premises, as well as injuries resulting from the use of your products.
A customer slips and falls in your retail store, causing a serious shoulder injury. A CGL policy will pay the medical expenses for the injured party and cover legal costs if they sue you over the incident.
Some policies also include product liability coverage, which pays for losses incurred due to defective products. This includes faulty labeling, packaging errors, and other product risks.
You can get a commercial general liability policy as part of a Business Owners Policy (BOP) or Commercial Package Policy (CPP). It’s important to discuss your specific needs with an insurance professional so you can purchase the right amount of protection for your business.
There are many reasons that you may need commercial liability insurance, including when you’re applying for a professional license or signing contracts. It can also be required by employers or clients for certain types of work.
In addition, you might need to carry a certain amount of general liability coverage when you’re renting an office space or signing a lease. Whether you’re a contractor, a consultant, or a skilled tradesperson, this type of insurance is essential for businesses to have in place.
In addition to property and liability coverage, a commercial general liability policy often includes worker’s compensation. This coverage protects your employees and their families if they are injured on the job. It can also cover wages and other benefits if they miss time for work.
Commercial umbrella insurance
Commercial umbrella insurance is a type of liability coverage that provides additional protection beyond the limits of your general business liability or auto policy. It can also protect against the cost of a lawsuit, medical expenses, and other costs that your primary policies might not cover.
Traditionally, only large businesses purchased umbrella policies, but more small and midsize businesses are choosing to purchase them to protect themselves against the increasing costs of lawsuits. While this protection is not required by law, it can provide a much-needed buffer of financial protection.
If you own a business that works on another person’s property or operates heavy machinery, you may be more susceptible to third-party liability claims. These can quickly exhaust your company’s general liability policy.
As a result, you could find yourself on the hook for a large sum of money. Without umbrella insurance, you would have to cover the shortfall out of your own funds or risk putting your company at risk.
Umbrella policies can be very different from one company to the next, so it’s important to understand exactly how they work and what coverages are available. Some umbrellas contain a self-insured retention (SIR), which is a specified amount that your firm must pay before your umbrella will make any payments.
For example, if you’re sued for discrimination in violation of a customer’s religious beliefs and your firm has an SIR of $5,000, your umbrella will pay up to the total of the SIR.
Regardless of the amount of coverage you need, a good insurance agent can help you choose the right commercial umbrella policy for your needs. They can also help you find a good rate for your policy.
