Business Daily.
.
The Property Pack
A+ R A-

A Guide to the Different Forms of Commercial Insurance



All businesses, no matter how big or small, have access to a wide range of insurance options. Obtaining Commercial Insurance and regularly updating and reviewing your policies, are key steps in ensuring that your business is not left in the dark following life’s many unforeseen events.

An experienced Business Insurance Broker, can assist you in reducing your exposure to risk, and find an insurance program that is aligned to your specific needs and objectives. Read on to find a guide to the different forms of Commercial Insurance, and why each is vital to the longevity of your business.

There are three broad types of business insurance:

  • asset and revenue insurance

  • personal and workers insurance

  • liability insurance.


Asset and Revenue Insurance


Property Insurance


Property insurance is vital in order to protect your building, equipment, computers, and inventory. It is important to note that events like floods or earthquakes are not generally covered under standard insurance policies. It is therefore important to consult with an experienced insurance broker, in order to determine a separate or additional policy, to cover any other events that are relevant to your business location.


Business Interruption Insurance


Business interruption insurance covers lost income and expenses resulting from property damage or loss. After obtaining business interruption insurance, you would be reimbursed for net profits, rent and salaries if you were forced to close your business for a period of time after a fire or theft.


Motor Vehicle Insurance


Commercial Motor insurance including hire and reward van insurance can cover anything from a single car to a fleet of trucks. If your vehicles are used for business purposes and are used to secure income for the business, it is important to have comprehensive car insurance. All vehicles need insurance get quotes for fleet insurance in California.

Personal and Workers Insurance


Personal Accident and Sickness Insurance


As the heart and soul of your business, this insurance will compensate for loss of income suffered if you have an accident or illness that prevents you from carrying out your work for an extended period of time. If you are a sole trader or independent contractor, this form of insurance is particularly important.


Workers' Compensation Insurance

Workers’ Compensation schemes protect your employees in the event of an accident or some forms of illness that has resulted from their work. Workers compensation insurance is compulsory in most states, so once the first employee has been hired, workers’ compensation insurance should be added to the business’s insurance policy.


Liability Insurance


Professional Indemnity/Liability Insurance


Professional indemnity protects you from legal action after someone has suffered a loss by following your professional advice, or as a result of your receiving your service. This includes injuries that you (generally your business operations) have caused to third parties. Forms of professional indemnity include:

Errors and Omissions Insurance: Covers inadvertent mistakes or failures that cause injury to a third party. It is important to note that liability insurance will only cover parties against mistakes, not intentional or reckless acts.

Malpractice Insurance: Malpractice insurance, also known as professional liability insurance, refers to the reimbursement of compensation paid when a professional’s conduct falls below the standard of care.


Product liability insurance


Product liability insurance is a must for any business that involves manufacturing products for sale. Product liability insurance works to protect a businesses financial interests in the event that a product causes injury to others.


Data Breach Insurance


In the Digital Age, privacy protection is more important than ever. If your business stores sensitive information about employees or clients on their computers or in paper files, you are responsible for protecting that information. With most important documents being stored as data, a data breach policy is essential to protect you against losses caused by a breach or leak.


Speaking with an experienced Insurance Broker can ensure that you receive the best insurance package available for your unique needs. You can achieve peace of mind, knowing that you are protected from life’s unexpected events, and can focus instead on operating a profitable and rewarding business.


Bio: Laura Costello is a recent graduate of a Bachelor of Law/International Relations at Latrobe University. She is passionate about the law, the power of social media, and the ability to translate her knowledge of both common and complex topics to readers across a variety of mediums, in a way that is easy to understand.

Business Daily Media