Commercial Insurance And Its Types

Commercial Insurance, also known as business insurance, is a type of insurance that protects your business from various risks. Read more to learn about it in detail.

What is Commercial Insurance?

In simple words, commercial insurance or business insurance is a policy that covers one or more types of insurance coverages designed to protect the business from various risks. In addition, it also protects business owners and their employees. 

As we know, every business is different and has different insurance needs. Hence, there is no one-size-fits-all policy. Every policy varies depending on the type of business and its size. 

Thus if you check the market, you will see various insurance policies like grocery store commercial insurance, gas station insurance, commercial hotel insurance, commercial restaurant insurance, and more. 

What are different types of Commercial Insurance?

If narrowed down, there are many types of commercial insurance policies. But majorly, there are only five types that cover almost everything:

  • Property Insurance
  • Host Liability Insurance
  • Equipment Breakdown Insurance
  • Workers’ Compensation Insurance
  • Commercial Auto Insurance

Let us understand these insurance coverages one by one below. 

Property Insurance –

This insurance coverage pays for the repairs of any property damage to your shop, restaurant, store, gas station, etc. 

Furthermore, it protects your business property from damages caused by natural disasters, fire accidents, theft, and vandalism attacks. 

Similarly, it also protects the inner contents of your store, shop, or business property. 

Host Liability Insurance –

Host liability insurance, also known as general liability insurance, pays for third-party injuries or property damage claims. 

Hence, this insurance may include liability coverages like cyber liability insurance, liquor liability insurance, commercial crime insurance, pollution liability insurance, or more. 

Equipment Breakdown Insurance –

Businesses like grocery stores, hotels, restaurants, gas stations, etc., use various heavy and complex equipment in their day-to-day functioning. This kind of equipment is expensive, and its repair or replacement costs can be very high. 

In order to save these expenses, business owners invest in equipment breakdown insurance and stay protected from expensive repairs and replacements. 

This coverage may cover refrigeration devices, meat cutters, escalators, elevators, computers, teller machines, and more. 

Workers’ Compensation Insurance –

This insurance protects your employees from physical risks at work. It pays for medical costs in case of an on-the-job injury. 

Furthermore, it also provides wage compensation to employees who are recovering from an on-the-job injury. Besides these, it also secures the dependents of an employee who passes away at work. 

Commercial Auto Insurance –

This insurance is different from your personal auto insurance. It covers the damage and repair costs of commercial vehicles like cars, trucks, vans, and more. 

In addition to repair costs, it also pays for third-party property damage or injury claims. 

If you are using a different vehicle for your business needs, it is essential to get this insurance as your personal auto insurance won’t cover your business vehicle. We understand that the insurance needs of every business are different. However, these are the primary insurance coverages your commercial insurance policy must cover. Apart from these, there are additional coverages for each business so that your it is completely covered. Check out various lines of insurance and other coverages as per your business type or connect with our insurance agents on 855-5EXCEED.

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