The Top 5 Commercial Insurance Policies You Need for Your Small Business
Commercial insurance protects businesses from financial losses due to a variety of risks. There are many different types of commercial insurance available, each of which meets a specific set of needs of different types of businesses.
In this article, we will take a look at some of the most common types of commercial insurance. As a business, you will need to find the appropriate ones for your requirements.
- Auto Insurance
This is a type of commercial insurance that is designed to protect businesses that own and operate vehicles. This can include anything from a single delivery van to a fleet of trucks that are used to transport goods.
There are more than 937,436 small businesses in New Jersey that employ over 1.9 million employees. This, according to the US Small Business Administration, accounts for 49.5% of New Jersey employees.
There are plenty of service providers in such a thriving market. Ensure you browse reliable online resources when you scout for a company for commercial auto insurance in New Jersey. Auto insurance can provide coverage for a variety of risks, including the ones mentioned below.
This type of coverage can protect a business from financial losses due to accidents that occur while a company vehicle is being operated. This can include coverage for injuries or damages to other vehicles, as well as any legal fees that may be incurred as a result of an accident.
This type of coverage can help to pay for repairs to a company vehicle if it is involved in an accident, regardless of who is at fault.
This type of coverage can protect a business from financial losses due to non-collision-related damages, such as theft, fire, or severe weather.
The automobile insurance industry in the USA 2022 generated $ 327 Billion in 2022. Thus, it is a stable and high-potential sector you should be able to find a policy that suits your unique requirements.
- General liability
General liability insurance is a type of commercial insurance that protects businesses from financial losses. It covers financial losses caused by accidents or injuries that occur on their property, as well as for any products or services they provide.
It can provide coverage for medical expenses, advertising injuries, legal fees, and damages.
Businesses should also be aware of any specific legal requirements regarding liability insurance that may apply to their industry or location. General Liability insurance typically provides coverage for third-party claims but not for claims by employees or business partners. In those cases, additional types of insurance would be needed.
- Property insurance
Property insurance is the kind of commercial insurance that protects businesses from financial losses due to damage or loss of their physical property. This can include things like buildings, equipment, inventory, and other assets that are essential to the operation of a business.
There are a few different types of property insurance that businesses can choose from, including the ones mentioned below.
- Building insurance
This type of coverage can protect the physical structure of a building, such as the walls, roof, and foundation. This type of coverage can be especially important for businesses that own their buildings or commercial property.
- Business personal property insurance
This type of coverage can protect items that are not permanently attached to a building, such as furniture, equipment, and inventory. This type of coverage is especially important for businesses that have a lot of movable assets.
- Inland marine insurance
This type of coverage is for businesses that transport goods and is designed to protect items that are in transit. This can include things like shipping containers, cargo, and other assets that are transported by truck, train, or ship.
d) Boiler and machinery insurance
This type of coverage provides protection for machinery and equipment used in a business. It can include steam boilers, pressure vessels, pumps, electrical switchgear, generators, and more.
- Business Interruption Insurance
Business interruption insurance, also known as business income insurance, protects businesses from financial losses due to unexpected events that may force the business to close temporarily.
These events can include things like natural disasters, fires, power outages, and other events that can disrupt the normal operations of a business. It provides coverage for a variety of costs that a business may incur as a result of an interruption in operations, including lost income, extra expenses, and employee salaries.
Lost income coverage accounts for the income that a business would have earned if it had been able to operate normally. Extra expenses include coverage for any additional expenses that a business may incur as a result of an interruption in operations, such as the cost of temporarily relocating or renting equipment.
Employee salaries coverage accounts for the salaries of employees during a period of interruption in operations if your policy includes it.
- Cyber Insurance
Cyber insurance is a kind of commercial insurance that provides protection to businesses from financial losses due to data breaches, cyber-attacks, and other cyber-related incidents. It can provide coverage for costs such as data recovery, notification, credit monitoring, business interruption, legal and regulatory costs, and cyber extortion.
The Small Business Administration warns small businesses against cyber attacks in an October 2022 article by mentioning an alarming result from a survey conducted by IBM. More than half of small businesses experienced a cyber attack in 2021, yet only 50% of them had a cybersecurity plan. The same article also mentions that data breaches in small businesses had increased by 152% in 2020 and 2021 over previous years.
Despite implementing measures, you are susceptible to a cyber attack. Hence, as a responsible business, you need to review and update your incident response plans and evaluate your IT security controls.
Commercial insurance plays a key role in ensuring your business is protected from risks arising due to unforeseen circumstances. Commercial insurance can be tailored to meet the specific needs of different types of businesses, such as auto insurance, general liability, property, business interruption, cyber, and worker’s compensation insurance. It is vital to assess your business needs and work with an insurance agent to find the right coverage for your business.