Different Types of Commercial Business Insurance

Commercial business insurance provides wide-ranging protection for businesses and their subsidiaries under a single policy. There are various types of commercial business insurance that takes care of property, liability and workers' compensation, to name a few. While property insurance covers damages to business property and products stored within the premises; liability insurance provides cover for damages to third parties; and workers' compensation insurance covers injuries to employees. Commercial business insurance is an important aspect of any business that cannot be ignored especially if the business premises are leased or rented and even otherwise.

The following are some of the risks that should be covered by commercial business insurance -

Liability Insurance - a liability insurance policy provides coverage to customers, business associates or employees. The business liabilities covered under liability insurance are mentioned below.

Personal and Advertising Injury Fire Liability: This is, in most cases, a legal requirement if the business premises are leased or rented. This protects the business in case an eventuality takes place due to negligence and the landlord's property is damaged or destroyed.

Products and Completed Operations Medical Expense or Medical Payments: If a customer gets seriously injured by using company manufactured product or products, then this coverage takes care of the legal expenses involved.

Some policies do not include coverage for products and completed operations, personal injury and advertising coverage. In cases of professional services like legal services, engineering consultancy, dental and medical services, professional liability insurance is available.

Insurance for Worker's Compensation

Employee's health insurance is necessary for small businesses. Most companies offer health insurance to attract qualified employees. New business ventures invest in state compensation fund to take care of their employee compensations. But as business grows, these companies opt for tailor-made coverage.

Other Types of Insurance

Coverage for company vehicles is known as auto insurance coverage - this offers protection against collision which means its frees you from the liability of paying bills for damage caused to the other party; collision also covers damage done to one's own car. This coverage, which is required in most states, compensates the driver of the other car and its passengers in the event of an accident. It also covers the passengers in one's own car.

Uninsured or Underinsured Motorist Coverage

This coverage pays for medical and other costs for oneself and family in the event of an accident with either a hit-and-run driver or a driver who doesn't have enough auto insurance.

Commercial business insurance also includes employee health insurance plans to suit the size of small. This insurance helps recruit and retain good employees.

Key Person Insurance A very important policy which is applicable to people without whom a business cannot continue to function. Key person insurance protects the business in the event of a key person falling ill or expiring. A good commercial business insurance company will always insist on this insurance to provide for continuity in transition of ownership if an injury or death occurs to a small business owner or a key employee.