As a business owner, you want to ensure that your organization, employees, work vehicles, and equipment are kept safe. The best way to protect your company and its assets is to obtain commercial coverage with small business insurance.
Commercial coverage can help you recover losses related to natural disasters, theft, and fire. Small business insurance is similar to your homeowners and automobile insurance policy, as it protects you from accidents and liability issues.
You’ve likely put a lot of time and money into building your business, so keeping it afloat is probably one of your top priorities. The employees you hired have also spent much of their time helping you grow your company and deserve protection from accidents and losses as well.
Purchasing insurance for your business is a relatively easy task. To find out more about what type of commercial coverage you can buy, reach out to a reliable and professional insurance agent.
Frequently Asked Questions
Some considerations should be taken when deciding on a commercial coverage policy. Let’s dig into the options you have and some frequently asked questions you might have.
What types of insurance are available to small business owners?
Some of the most common insurance types for business owners are general liability insurance, property insurance, auto insurance, and worker’s compensation insurance.
What insurance should I consider and why?
An agent can help you determine what type of coverage your specific business needs. Depending on the type of business you run, this can vary.
For example, if your business involves farming, you would need to add agribusiness insurance, a policy that is not required for someone who bakes or runs an online shop.
Are there any discounts?
Many insurance companies do offer bundles and discounts. When you speak with an agent, they can tell you if you qualify for any.
How can I get a quote?
You can receive a quote by talking to a reputable insurance agent and scheduling a virtual appointment.
Can I get more coverage?
It is usually possible to get more coverage. You may be able to overcome gaps where you lack coverage by opting for an umbrella policy.
How and when do I file a claim?
When an accident or damage occurs, you want to file a claim as soon as possible.
To file a claim, you would first contact law enforcement or emergency services (if someone was injured).
Then you would need to contact your insurance agent and work with an adjuster.
If property or vehicles were damaged, the next step would be to have those repaired and to take better safety measures at the workplace in the future.
Basic Commercial Coverage
There are two basic commercial coverage policies that all small businesses should consider.
Commercial auto insurance
If your vehicles are used for business purposes, commercial auto insurance will protect them from accidents, weather hazards, theft, vandalism, and more.
While commercial auto insurance is similar to your standard auto insurance policy, there are a couple of key differences. Collision and liability coverage will be higher, and your policy will be tax-deductible.
The two most common types of commercial auto policies are physical and liability coverage. Together, these offer collision loss, comprehensive loss, bodily injury coverage, and property damage coverage.
You also have the option to add on rental reimbursement coverage, uninsured or underinsured motorist coverage, and personal injury and medical payments coverage.
Commercial property insurance
Commercial property insurance is essential as it protects your company’s building, equipment, machinery, inventory, and office supplies.
Just as large companies need property insurance, small business owners do too.
It may even be critical for newer and smaller companies. An accident such as a fire, burst pipe, or storm could easily take out your business when you don’t have the funds to rebuild it.
Business owners have several options to protect their company and its assets. You can choose from a business owners policy (BOP), which offers property insurance and liability insurance.
Or, you can go for a commercial package policy (CPP). With this policy, you get property insurance and liability insurance but can add more coverage types, including:
- Business income insurance
- Vehicle insurance
- Crime insurance
- Commercial umbrella liability
- Electronic data processing coverage
- Equipment breakdown
- Employment practices liability
- Inland marine
- Pollution liability
What Each Policy Can Cover
Purchasing small business insurance can protect your company and its vehicles from damage that occurred due to the weather, flooding, fires, theft, and accidents.
Let’s look at what protection each type of coverage offers by each type of business insurance.
Commercial auto insurance
This will help pay for car accidents, regardless of whose fault it is (yours or your employees).
Commercial property insurance
This insurance helps protect your business’s warehouse or location and the property that resides inside of it, such as your furniture, inventory, appliances, equipment, and tools.
Workers’ compensation insurance
This pays for your employee’s medical care if an accident at work leads to an injury. It’s highly recommended for all businesses.
Commercial general liability insurance
Insurance that offers your company protection from claims of bodily injury, property damage, and slander.
Business owner’s policy (BOP)
A combination of commercial property and liability coverage, meaning you will receive protection from both of these types of coverage.
These are some of the most common add-ons, but always ask your insurance agent for a complete list.
Flood Insurance: This is critical if you live near the water or store your tools and equipment in a basement.
Electronic data processing insurance: A helpful add-on that will help protect losses due to power surges and virus attacks.
Expanded towing and roadside assistance: A much-needed add-on that would provide you with emergency services, including flat tires, dead batteries, towing and mechanical failure.
Gap coverage: If you are the original owner of your company’s vehicles and are not entirely paid off, this will help you pay off the vehicle if it is totaled or stolen.
Rental reimbursement: If you have to rent a vehicle for your business needs because your company vehicle is being worked on, this endorsement will help you pay for the rental.
Debris removal: This gets you reimbursed for clean-up that occurred due to a storm or fire.
Fire Department service charge: You can get reimbursed $1,000 if the fire department has to come out to your company’s physical location.
Frost & Remer for Your Insurance Needs
Accidents can happen at any time, which is why making sure your business is covered and protected is essential to growing and maintaining your company.
Every businessperson knows that there are risks you must take to become successful. But, a lack of preparation for the unexpected is not one of them. This is why we are here to offer you peace of mind and protection.
At Frost & Remer, we are knowledgeable and experienced when it comes to small business insurance needs.