Commercial Insurance 

When opening your own business, you are faced with many expenses.  Of all expenses you can save on, insurance isn't one of them. Unfortunately, good luck and positive thinking will probably not protect your business from losses. Unforeseen and bad things happen to the most conscientious business owners. That's why you need insurance. 

The most common types of commercial are property, liability and workers' compensation. In general, property insurance covers damages to your business property; liability insurance covers damages to third parties; and workers' compensation insurance covers on-the-job injuries to your employees. Depending on your business, you may want some or all of these along with additional specialized coverages.

Here are some examples of specialized coverage: 

Property Insurance
Property insurance pays for losses and damages to real or personal property. For example, a property insurance policy would cover fire damage to your office space.  You can purchase additional coverages for business property including: 
  • Boiler and Machinery Insurance
Boiler and machinery insurance, sometimes referred to as "equipment breakdown" or "mechanical breakdown coverage," provides coverage for the accidental breakdown of boilers, machinery, and equipment. This type of coverage usually will reimburse you for property damage and business interruption losses. For example, this coverage would cover fire damage to computers.
  • Debris Removal Insurance
Debris removal insurance covers the cost of removing debris after a fire, flood, windstorm, etc. For example, a fire burns your building to the ground. Before you can start rebuilding, the remains of the old building have to be removed. Your property insurance will cover the costs of rebuilding, but not of removing the debris.
  • Builder's Risk Insurance
Builder's risk insurance covers buildings while they are being constructed. For example, a Builder's risk policy would cover losses if a windstorm takes down your partially constructed condominium complex.
  • Glass Insurance
Glass insurance covers broken store windows and plate glass windows.
  • Inland Marine Insurance
Inland marine insurance covers property in transit and other people's property on your premises. For example, this insurance would cover fire-damage to customers' clothing from a fire at your dry cleaning business.
  • Business Interruption Insurance
Business interruption insurance covers lost income and expenses resulting from property damage or loss. For example, if a fire forces you to close your doors for two months, this insurance would reimburse you for salaries, taxes, rents, and net profits that would have been earned during the two-month period.
  • Tenant's Insurance
Commercial leases often require tenants to carry a certain amount of insurance. A renter's commercial policy covers damages to improvements you make to your rental space and damages to the building caused by the negligence of your employees.
  • Crime Insurance
Crime insurance covers property crimes such as theft, burglary, and robbery of money, securities, stock, and fixtures from employees and outsiders.
  • Fidelity Bonds
A bond company covers losses due to a bonded employee's theft of business property and money.

Liability Insurance
Liability insurance covers injuries that you cause to third parties. If someone sues you for personal injuries or property damage, the cost of defending and resolving the suit would be covered by your liability insurance policy. A general liability policy will cover you for common risks, including customer injuries on your premises. More specialized varieties of liability insurance include:

Errors and Omissions Insurance
Errors and omissions ("E & O") insurance covers inadvertent mistakes or failures that cause injury to a third party. The act must actually be an inadvertent error, and not merely poor judgment or intentional acts. For example, an E & O policy would cover damages arising from an insurance agent failing to file policy applications, or a notary forgetting to fill out notarizations properly.

Malpractice Insurance
Malpractice insurance, or professional liability insurance, pays for losses resulting from injuries to third parties when a professional's conduct falls below the profession's standard of care. For example, if a doctor makes a mistake that other doctors of his specialty would not have made, his patient might sue him. A malpractice policy will pay his defense costs and any judgment or settlement. Malpractice insurance is available for doctors, dentists, accountants, real estate agents, architects, and other professionals.

​Automobile Insurance
Commercial automobile policies cover the cars, vans, trucks and trailers used in your business. The coverage will reimburse you if your vehicles are damaged or stolen or if the driver injures a person or property.


Workers' Compensation Insurance
Workers' compensation insurance covers you for an employee's on-the-job injuries. Businesses with employees are required by various state laws to carry some type of  workers' compensation insurance. In most cases, workers' compensation laws prohibit the employee from bringing a negligence lawsuit against an employer for work-related injuries.
Who needs business insurance?

ALL businesses because as the examples below show - the unexpected could cost you your business. 
  • You pull a healthy tooth from a patient's mouth, she sues you. 
  • You arrive at work one morning and find all of your computer equipment has been stolen. 
  • A customer slips on a just washed floor in your market and breaks her ankle. 
  • One of your warehouse employees has been taking electronic equipment and selling it out of his home.
  • While driving a client from the airport to a meeting, your employee hits the guardrail and injures himself and the client.
  • The building where your business is located is damaged in a fire; the damage to the building and your equipment keeps you from operating for three months.  Between lost profits and continuing business expenses, you lose $150,000. 
  • One of your employees leaves a coffee maker on and it burns down the building where you lease office space. 
  • An entire shipment of evening dresses you designed and manufactured is destroyed in a warehouse flood. 
  • A number of children have a severe allergic reaction to cookies you have manufactured - you forgot to list whey in the ingredients. 
  • Shortly after the resignation of your accountant, you realize that she has been writing company checks to herself and family. 
          These types of examples are sadly not that                                              hard to imagine.
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Is your business listed here?
Here's our attempt to capture many of the small and large businesses that should have different business insurance policies to protect themselves. 
  • Financial Services -  Accounting, Billing Services, Bookkeeping Services, Financial Planning, Grant Planning, Medical Billing, Payroll Services and Tax Preparers
  • Beauty Services - Barber Shops, Hair Removal Services, Hair Styling Salons, Nail Salons and Tanning Services
  • Books, Toys, Crafts and Office Supply Stores - Book Stores, Fabric/Needle/Yarn & Piece Goods, Hobby/Craft and Artist Shops, Office Machines, Religious Goods, School Supply Stores, and Toy and Game Stores
  • Business Consultants - Communications Consultants, Computer/Website Design, Corporate Trainer, Event Planner, Executive Coaching, Fundraising Consultant, Human Resources, Leadership Consultant, Project Management, Sales/Advertising,Marketing Consulting and Strategic Planning.
  • Professional Services - Acupuncturists, Chiropractors, Counselors, Dentists, Doctors, Employment Agencies, Executive Search firms, Lawyers, Massage Therapists, Notaries, Oral Surgeons, Physical Therapists, Psychologies, Resume Services, Speech Therapists, Title Companies and Veterinarians. 
  • Specialty Clothing & Accessory Stores
  • Copy & Mail Services - Copying stores, Documents Imaging, Mailbox or Packaging Services, Mailing & Addressing Services, Packaging & Labeling Services, Photoengraving Services and Printers for business & stationary. 
  • Drug Stores and Pharmacies
  • Food & Beverage Stores - Bakeries, Coffee/Tea and Spice stores, Grocery Stores, Health Food Stores and Ice Cream/Yogurt Stores.
  • Home Goods & Home Improvement Stores - Bath & Bedding Stores, Children's Furniture Stores, Drapery/Curtain & Upholstery Stores, Floor Covering Stores, Furniture & Home Accessory Stores, Garden Centers, Hardware & Tool Stores, Kitchenware Stores, Lighting & Fixture Stores, Mattress Stores, Office Furniture Stores, Outdoor Furniture Stores and Paint/Wallpaper & Wall Covering Stores. 
  • Health & Personal Care Stores - Cosmetics/Hair/Skin/Beauty Supplies & Perfume Stores, Health or Natural Food Stores, Hearing Aids, Medical/Hospital & Surgical Supply, Optical Goods Stores and Vitamin Stores.
  • Specialty Shops and/or Services - Art Shops, Bicycle Shops, Dollar Stores, Dry Cleaning Stores, Florists, Funeral Homes, Gift Shops, Golf Equipment Shops, Laundromats, Locksmiths, Musical Instrument Shops, Party Supply Stores, Pet Supply Stores and Sporting Goods/Equipment Shops.
  • Personal Services - Educational Testing Centers, Engraving, Learning Centers, Uniform Supply, Pet Grooming, Piano Tuning, Professional Organizers, Tailor, Tutoring and Wedding Planning. 
  • Photographers - Commercial Photographers, Studio/Portrait Photographers, Videographers and Wedding Photographers. 
  • Relocation Services - Real Estate Agents, Real Estate Appraisers, Relocation Agents and Mortgage Brokers. 
  • Contractor Services - Electrical Services, Handyman Services, Home Repairs, HVAC Repair Services, Landscaping Services, Lawn Care Services, Painting Services, Plumbing Services, Swimming Pool Services and Tree Trimming Services. 
  • Home Based Businesses - Arbonne, LuLaRoe, Pampered Chef, Rodan Fields, Scentsy, Tupperware and Young Living - to name a few. 
  • Retail Food Services - Bar/Liquor Stores, Catering Services, Delicatessens and Restaurants.
  • Housing Services - Apartment Buildings, Assisted Living Centers, Bed & Breakfasts, Condominium Complexes, Day Care Centers, Hotels/Motels, Nursing Homes and Town Home Communities.