Guide to Commercial Insurance Coverage

For entrepreneurs launching a business as well as new or old-time business owners, commercial insurance is the sine qua non to their entity's survival, keeping it financially afloat when unexpectedly struck by unforeseen circumstances. Constituting a vital and valuable ongoing investment in the life of their company, commercial insurance protects business owners against substantial financial loss.

What is Commercial Insurance?

It is business insurance that offers liability coverage to companies and helps them bounce back when beset by losses such as property damage, worker injuries, theft, business interruption, fire, environmental disaster, or liability claims. With this type of insurance, businesses can avoid financial impairment and liquidation.

Types of Commercial Insurance

Companies may avail themselves of various types of commercial insurance coverage, the most common being property insurance and commercial liability insurance such as general liability insurance. Coverage categories under business property insurance include crime insurance, boiler and machinery insurance, and inland marine insurance. Other popular forms of commercial insurance are as follows:

    1. Design liability insurance
    2. Cyber insurance
    3. Business interruption insurance
    4. Commercial vehicle insurance
    5. Workers' compensation
    6. Earthquake insurance
    7. Flood insurance
    8. Business property
    9. Professional liability insurance (also referred to as fiduciary liability insurance)
    10. Directors and officers insurance
    11. Small group health insurance
    12. Environmental insurance


What is a Business Owners Policy?

One method of obtaining attractive commercial insurance rates is to purchase a combination policy known as a Business Owners Policy (BOP), which provides coverage for business interruption, general liability, and property. Its underwriting guidelines are strict, focusing on such considerations as apartment risks and maximum permissible square footage for offices. Eligible businesses pay a highly-competitive premium.


Raising the Deductible

Another method of acquiring lower commercial insurance rates and thus lower premiums is to pay a higher deductible. In exchange for accepting to self-insure a greater amount of the losses, a policyholder is charged a lower premium.

Controlling Loss Exposures

Business owners can also reduce their premium costs by engaging in loss control and getting their employees to participate in decreasing the business' exposure to losses. Loss prevention programs as well as employee safety programs result in safer workplaces and increased protection for the public. By instituting such loss control methods, businesses benefit from lower commercial insurance rates.

Steps to Purchasing Commercial Insurance

Consumers should first find a licensed, trustworthy, and qualified insurance broker-agent whose professional niche is commercial insurance coverage. He or she must be well-versed in the different commercial insurance products and be able to assist them in choosing the coverage that best corresponds to their business' needs. Consumers can locate an agent by contacting their local insurance association or asking their entourage (friends, family, family attorney, etc.). To find optimal commercial insurance rates, they should seek out a knowledgeable and competent agent with whom they feel at ease. Prospective purchasers should interview a number of agents to ensure that the one they hire will maximize savings on their insurance premiums.

Commercial Insurance Quotes

One of the most effective and efficient ways to obtain the lowest rates on commercial insurance coverage is by requesting commercial insurance quotes. These tools enable businesses and companies to find low-cost plans that offer quality coverage and excellent benefits for employees.

Rating criteria determine commercial insurance quotes, and these vary depending on the type of insurance being purchased. For instance, the cost of commercial property insurance may be based on fire protection and the type of construction, while that of commercial liability insurance may be based on payroll, gross sales, or square footage. Commercial insurance providers calculate the premium by multiplying the exposure or the deductible chosen by the rating.

Business owners may obtain commercial insurance quotes and rates by visiting local companies in person or consulting quote service providers on the internet. Numerous online commercial insurance companies offer free, no-obligation online quotes that are easy and quick to apply for and obtain. By filling out a commercial insurance quote request form, visitors may obtain rates from a multitude of companies at once, all of whom offering low-cost insurance packages and competitive premiums. Consumers need simply complete the following fields: 1) their state and zip code, 2) the type of commercial insurance quote they are seeking (i.e. contractor liability insurance, employment practices liability insurance, business liability insurance), 3) the type of business they own, 4) their name, and 5) their telephone number. Instant and fast commercial insurance quotes and affordable insurance rates are available from leading carriers in the fifty states.

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