Commercial Insurance: Why You Should Opt For Complete Coverage

It’s often been said that your insurance is only as good as the coverage you choose, and this has never been truer than in the case of commercial insurance. Continue reading and learn why you should opt for complete coverage.

What is Commercial Insurance?

Before we get into how much coverage a business owner should have, let’s go over what commercial insurance is and the type of coverage it provides. Commercial insurance is often called business insurance because it’s used by businesses to protect them from losses due to unexpected circumstances. Commercial insurance, which offers protection against liability, property damage and theft, is actually the best and most important investment a business owner can make.

Commercial Insurance: Why You Should Opt For Complete Coverage

What Type of Commercial Insurance Should Businesses Have?

Commercial insurance policies are designed to offer a few different types of coverage. According to a Newfoundland insurance agent, business owners often have the option of combining these policies into a single bundle, or getting individual policies for coverage for the following:

  • Property insurance provides coverage against damage or loss caused by accident, theft or some other unforeseen circumstance.
  • Liability insurance protects the business and business owner against legal claims for physical injury, bodily injury and property damage. Liability insurance can be either general liability or professional liability. Business owners who provide professional services often have errors and omissions coverage, which protects them from claims of errors or negligence in the performance of their duties.
  • Worker’s Compensation Insurance is a type of insurance for business owners who have employees. It pays for medical expenses and disability expenses for employees who were injured while on the job. Worker’s compensation insurance is required in some states.

Why It’s Important to Have the Maximum Coverage

One the most important reasons to have the maximum amount of business insurance is, basically, to protect the business. As unfortunate as this may be, we live in society that’s filled with lawsuits. Most business owners have saved and worked very hard to get their business to the point to where it’s finally making a profit. One lawsuit, and the business owner can easily lose the entire business.

An employee can become injured on the job through no one’s fault but may be off work for many months. The employee has no income coming in and thousands of dollars of medical bills coming in each month. If the employee decides to sue the business owner for all the losses incurred, it can quickly wipe out the business, leaving no capital or money to keep the business running.

Regardless of what type of insurance a business owner is contemplating, it’s vital that the business purchase an adequate amount to cover the business against any type of loss. After all, that’s the whole purpose of carrying insurance, both personal and commercial.

Informational Credit to Steers Insurance