If you own a business, you know how much of your hard work and income are at stake. Your family and your employees depend on you. In terms of worth and value, your business may be your single biggest investment. Imagine the heartbreak and chaos that would result if your business suffered a devastating loss.

A variety of commercial insurance coverage can protect virtually every aspect of your business. In addition, a number of group plans can provide for employee benefits. Even the life and health of your key partners can be covered by other forms of insurance.

Considering the many factors that go into operating a business, you would be well advised to discuss commercial coverage with your insurance agent.

Frequently asked questions about business insurance

  1. What is commercial insurance?

    Essentially, commercial insurance protects your business property and equipment and protects you against the legal liability that could result from operating of your business.

  2. Aren’t there different kinds of commercial insurance?

    Yes, commercial insurance comes in many forms. For the most part, commercial insurance covers many things similarly found in non-commercial homeowner’s, auto, life, and health insurance — property damage or loss from fire, theft, liability, and the like. But businesses also have special needs because of their locations, property, employees, equipment and machinery, etc.

  3. What is commercial property coverage?

    This kind of coverage protects your business from financial loss in the event business property has been damaged or destroyed — land, buildings, fixtures, furnishings, machinery, equipment, and the like. It usually also covers the personal property of others while contained on or within the business property.

  4. What about commercial auto coverage?

    Commercial auto coverage is similar to the typical auto insurance coverage people have for their personal vehicles — physical damage, liability, medical, uninsured/underinsured motorist, etc. What makes commercial auto insurance different from personal auto insurance is that coverage is extended to any vehicle, whether owned by the business or not, while it is being used for the insured’s business or personal activities.

  5. What is commercial crime coverage?

    Commercial crime coverage protects loss due to a wide variety of business-related crime. Coverage extends to such things as loss of money or property resulting from employee dishonesty, forgery, or alteration; theft, disappearance, or destruction of business property; robbery, safe burglary, and theft both inside and outside of premises; and computer fraud and extortion.

  6. What is business income coverage?

    Business income insurance covers the loss of business income in the event the business cannot operate due to loss or damage to real and personal property.

  7. What is commercial general liability coverage?

    Commercial general liability insurance covers a broad range of issues: damages for bodily injury or property damages; liability arising from personal injury and advertising injury; accidents occurring on or away from the premises; and injury or damages stemming from the products made or sold by the business. Coverage may also include supplemental payments for attorney fees, court costs, and the defense of a liability suit.

  8. What is umbrella liability coverage?

    Umbrella liability policies provide coverage that is broader and over and above the liability coverage found in the other primary policies carried by the business. Umbrella policies do three things: 1) provide additional limits above each occurrence limit of the insured’s primary policies, 2) take the place of primary insurance when primary aggregate limits are reduced or exhausted, and 3) provide coverage for some claims that might not be covered by the primary insurance policies.

  9. Do I need business insurance if I own a home-based business?

    Quite likely, because the limits and exclusions found in some homeowner’s policies may leave you with inadequate coverage. A study conducted by the Independent Insurance Agents of America found that a high percentage of home-based business owner’s were underinsured, believing that their homeowner’s insurance was sufficient. Also, depending on the kind of business you operate, the materials and equipment used on your property, and other factors, your homeowner’s insurance simply may not cover your needs. If you operate a business from your home, you should consult with your insurance agent, who can help determine what kind of coverage is best for your situation.