A commercial property is any property that you purchase or rent for a revenue generating activity. As a business owner, you are responsible for that property so that in case of an accident, natural disaster, or criminal activity, you are liable to bear all losses. In comes commercial insurance, which takes the burden off the entrepreneur’s shoulder.
So what is commercial insurance? If you have purchased coverage plans for yourself, then you will understand many concepts easily. This is because many of facets of commercial and personal insurance are the same. Examples include auto insurance, property insurance, and liability coverage. .
What’s the Need?
If you own and are involved in the day to day affairs of a business, commercial insurance makes sure the business and its related assets are protected.
Business vehicles require commercial insurance. The type of plan depends on the quantity, models, and purpose of the vehicles. For instance, a delivery business owns many vehicles that are core operation of the company. They will need fleet insurance. Auto insurance also helps in the case when the company car is used by the employer or the employees for personal purposes. In the case, commercial auto insurance reduces risk. Likewise, many personal insurance plans do not cover the insured when using they are using personal vehicle for business purposes, making commercial auto insurance necessary.
Businesses that rent, lease, or own property must protect it from all risks, especially storm damage, fire or water damage. In such cases, the damage and the subsequent losses can quickly mount if you do not have commercial property insurance to back you up. Property insurance also covers the owner’s building, outdoor signs, furniture and equipment, inventory, fencing, landscaping, and others’ property. Not to mention, businesses that rent or lease storage space can cover their businesses assets such as stock by commercial insurance in the same way as they protect the business property.
This protects the company against the negligent behavior of an employee, or damages caused during any business operation. Liability coverage includes medical expenses, legal consultancy fees, and damages that arise from negligence or malpractice. You are also saved from paying an employee who got injured at work out or your own pocket.
In the end, it must be remember that commercial insurance needs vary from business to business. Contact us today to find the best commercial plan for your business.