When you own and operate a business you’re responsible for its commercial properties and results of its operations. This can be incredibly rewarding and profitable, after all, why else would you get into the business. Running a business, however, can also mean that you’re taking on a lot of risk. This is where commercial insurance and business insurance comes in, but just like your business isn’t a one size fits all for all your clientele, there isn’t a one size fits all way to do insurance.
To help you out, we’re going to answer a common question for people looking to get insurance for their business or commercial operation. Is commercial insurance the same as general liability insurance business liability insurance?
The short answer is no, they are not the same. For the long answer, let’s break down these terms as you’re likely to come across them when buying insurance for your business. We’ll also talk about why these are all essential parts of your comprehensive business insurance. Keep in mind that depending on the insurance product you end up purchasing the specific terms and conditions may differ and what is and isn’t included will differ.
What Is Commercial Property Insurance?
Commercial property insurance is going to be insurance that covers things that happen to your commercial property. This is designed to protect your investments in all the different physical aspects of your business, from physical stock and retail space to office furniture and appliances. If it’s owned by and is part of the business operations you’ll want to make sure that it’s covered by your commercial property insurance policy. Think about anything that could be lost or damaged in a fire flood or break-in and it’s probably something you want to make sure is covered by your commercial property insurance.
What Is Business Liability Insurance?
Business liability insurance is all about things that happen because of the operation of your business. Having a space open to the public or interacting with them leaves you open to all kinds of risk. If something happens in the normal day-to-day functions of your business that damages the property of another person or business, you want to make sure that your business liability insurance policy can cover this.
What Are Some Other Types Of Insurance I Should Think About For My Business?
Professional Indemnity Insurance – For potential lawsuits from third parties against your business.
Business Interruption Insurance – This is useful if your business suffers a loss of income because of some kind of outside event. Often this is brought in because of a natural disaster the forces the business to stop and sometimes covers the loss of income during the rebuilding period.
Commercial Vehicle Insurance – Covers potential accidents while during the operation of vehicles owned by the business and performing business procedures.
Workers Compensation Insurance – In case of injury to an employee while performing their work duties.
Cyber Liability Insurance – Covers the added risks associated with the digital and online operations of the business.
Hopefully, that can get you started in understanding how to get started on setting up a comprehensive business insurance package. Remember you don’t have to do it alone, in fact, you shouldn’t, a licensed and professional insurance broker can be a wonderful tool to help navigate this process.