About Commercial Insurance

Commercial insurance is generally purchased by various businesses as well as small business owners to provide insurance coverage for various perils or losses. Coverage is offered for property damage, theft, business interruption as well as injury to guests and employees. Three common types of commercial insurance include property, liability and workers compensation but others exist as well.

Property

Property insurance covers damage that is sustained to a business's property as well as the contents of its premises. In addition to contents, property insurance may cover "equipment breakdown" or the failure of mechanical devices, such as boilers. Other types of insurance include coverage for business interruption---coverage provided to pay wages and expenses for short periods while a business recovers from a loss, such as fire.

General Liability

A general liability policy protects a business in the event it is sued for injury as well as for property damage that is sustained by a third party. Other types of liability insurance include malpractice insurance for professionals as well as errors and omissions insurance for non-purposeful mistakes, such as failing to file forms or applications.

Workers Compensation

Workers compensation provides coverage for injuries sustained by workers while they are on the job. Most states require a business with a certain number of employees to purchase a workers compensation insurance policy. A workers compensation policy also limits that ability of employee to sue employers for damages.

Automobile

Commercial automobile coverage is another type of insurance that is available for businesses. Many types of businesses require commercial auto policy, which can be purchased for any type of business that uses a vehicle to go from job to job. This would include contractors and plumbers as well as delivery companies. These policies cover losses such as damage to the vehicle as well as theft.

Package Policies

A commercial package policy consists of two or more types of insurance coverage on a single policy. The most common types are commercial property and commercial general liability. Other types of insurance include inland marine as well as crime and commercial automobile. One benefit of a commercial package policy is that a single premium is being paid for all included coverages.