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The complexities of running a business can be overwhelming for anyone. Determining and deciding what kind of insurance your business needs doesn’t make things any easier.
Having someone to go through the insurance-buying process can help ensure that all your I’s are dotted and T’s are crossed. What follows are the policies that every business needs as a starting point:
1. Commercial Property Insurance
A commercial property insurance policy helps protect the building and equipment your business owns or leases. You can also add coverage to help protect other important parts of your company, such as valuable papers and records coverage.
2. Commercial Auto Insurance
Commercial auto insurance helps cover the costs when you or your employees are at fault in an auto accident, helping pay for damaged property and medical expenses. You’ll want a commercial policy if your company owns, leases or rents vehicles, if employees use their personal vehicles for business reasons or workers operate company vehicles.
3. Workers’ Compensation Insurance
Workers’ compensation insurance covers your employee if they suffer a work-related injury or illness. The coverage helps pay for medical care and missed wages. It can also provide financial assistance to a deceased worker’s family. Obtaining workers’ compensation for full-time and part-time staff is crucial in most states, and failing to comply with state laws can result in serious penalties for business owners.
4. General Liability Insurance
If someone slips and falls at your business, or you accidentally damage something of theirs while you’re working, this insurance could cover the claims and legal fees. General liability insurance, also known as business liability and commercial general liability insurance, also helps protect your business from claims of advertising injury and reputational harm.
5. Business Income Insurance
Business income insurance can help replace your lost income if you’re unable to open your doors after a fire, theft or other covered peril. For example, if a windstorm knocks down your power lines and sparks a fire in your building that forces you to shut down, this coverage can help recover your lost income until you can reopen.
6. Commercial Umbrella Insurance
Lawsuits can be more costly than you expect. If the costs of a claim exceeds the limits of your primary policy, commercial umbrella insurance can extend your liability coverage. Without this extended coverage, you may have to pay costs that exceed the limits of your primary policy yourself.
Depending on the line of business you’re in, there are other policies to consider, including cyber insurance, commercial flood, employment practices liability and more.
Insurance, like a lot of the details of running a business, can be complicated. That’s why we suggest an annual review of your coverage with your insurance agent. They’ll be able to confirm whether you have adequate coverage, eliminate any extras you no longer need, and identify any risks or exposures that may be new for your business.
Eric Gabrielsen is an insurance advisor in CCIG’s Commercial Lines department. Reach him at Eric.Gabrielsen@thinkccig.com or at 720-212-2027.
CCIG is a Denver-area insurance, employee benefits and surety brokerage with clients nationwide. We do more than make sure you have the right policy. We help you manage your long-term cost of insurance with our risk and claims management expertise and a commitment to service excellence.
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