As a business owner, you have the chance to reap a number of benefits, but you are also at risk to a number of unique liabilities. Getting commercial insurance policies is a good way to keep you and your business safe.
What Are Commercial Insurance Policies?
When you get basic business insurance, there are several different things that aren’t covered by this, the same way a homeowners insurance policy rarely covers flood damage. For business owners, one thing they need is liability coverage. The main thing that these commercial insurance policies do is insulate you and your employees from any sort of claims made against you regarding bodily injury on business grounds or property damage, such as copyright infringement. Your policy will help make sure that you and your business don’t have to directly pay for the expenses of litigation or settlements that you have to make—up to the limits of your policy.
Some more specific examples of commercial insurance policies include malpractice insurance. Should a third party have an injury caused by receiving substandard care, there is likely to be legal action, for example, a patient suing a doctor after a medical accident. In this case, malpractice insurance will help pay for any legal expenses or settlements the doctor has. If you have a fleet of vehicles as a part of your business, you can get commercial liability insurance on those to pay for any legal expenses or costs that happen if a driver on your payroll injures someone. This can also help cover you if some of your vehicles are stolen.
If you run a corporation or a non-profit, it may make sense to look into directors’ and officers’ liability insurance. These provide similar financial protection in the case of lawsuits leveled at the head of your business or non-profit.
Why Do You Need Commercial Insurance Policies?
When you decide to open up a business of your own, you’re already taking an inherent risk. With this risk comes a lot of potential liabilities. While conventional business insurance policies can help mitigate events out of your control, like theft or natural disasters, commercial insurance policies can help you in the event that your actions end up creating a legal issue for your business.
Legal fees can cause a lot of costs very quickly, whether they stem from you accidentally infringing on someone else’s intellectual property or an injury someone suffers while on your business premises. For small business owners, cash flow is a top priority, and anything that disrupts this could mean the end for your business. Factoring in commercial insurance liability policies into your business’s budget early means that you’re better suited to handle potential issues like these as they arise.
If you are looking to understand more about commercial insurance policies and what your best options are for your business, be sure to consult with your local insurance company right away. The professionals there can help guide you to the best policy for your circumstances.
