Commercial Insurance Explained

March 21, 2018


Over the years, many people have fallen victim to the numerous requirements that feature in commercial insurance policies as well as the terms of coverage; leaving them confused with all the verbiage. That’s why it’s important to have an experienced broker break down commercial insurance for you.

Definition of Commercial Insurance

Commercial insurance is designed to protect a business from financial losses that might occur when the business is conducting its normal operations. It is targeted towards large multinationals as well as small-scale businesses.

Because different types of business are exposed to different types of risks, insurance companies provide different types of commercial insurance policies. To ensure that you are signing up for the right insurance cover, ensure that you consult an experienced insurance broker or agent.

Types of Commercial Insurance Covers

Liability Insurance

It is part of our nature as human beings to err. When this happens it could result in the injury of an employee or even a customer. Equipment might malfunction as well. To protect your business from any of these liabilities you should consider taking the following types of insurance covers:

General – Covers any injury that a person might suffer while on the business premises

Professional – Protection in the event you or your company is taken to court for negligence, ommissions, or errors when administering professional services.

Product – This cover offers protection in the event that a product you make causes harm or is defective.

Property, Vehicle and Earnings Insurance

This particular commercial insurance cover, protects your company’s earnings and assets in the event that a disaster destroys your business premises, destroys assets or some other kind of emergency. Under this category there are various insurance covers that provide financial protection:

  • Surety Bonds
  • Commercial Property Insurance
  • Business interruption insurance
  • Fleet insurance
  • Commercial vehicle

Many of the above mentioned insurance covers are self-explanatory, but let’s take a quick look at business interruption insurance. This kind of insurance protects business owners in the event that they have to close their businesses temporarily. By taking business interruption insurance for your business, you’ll be able to cover loss of earnings during closure.

Owners, Partners, Key Employees Insurance

Some business are only operational when the key person is around. If anything were to happen to the key person and keep them away from work the business might experience a disaster. For this reason, it is important to take an insurance policy for he key person.

Some of the insurance covers that are included under this category include:

  • Key Person insurance
  • Life insurance
  • Critical illness insurance
  • Directors and Officers Insurance
  • Disability insurance

Health Insurance

Would you like to stem employee arbitrage or recruit highly qualified employees? Then, you need to think about offering them health insurance as it’s proven to make employers attractive to employees. Even though this is not considered commercial insurance, it offers protection for your employees.

Would you like to know where you can get affordable commercial insurance? Feel free to contact any of our agents.


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