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Commercial insurance FAQs

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Commercial insurance FAQs

We have listed the most often-asked questions to help you evaluate products and choose the proper insurance for your small company.

Compulsory and optional coverage for business insurance

What exactly is commercial liability protection?

Any commercial insurance that protects against a company's financial responsibilities for accidents, illnesses, or property damage is considered business liability insurance. Some examples of liability coverage are:

  • Insurance against bodily injury and property damage claims from customers
  • Insurance for professionals in case of client harm caused by their faults
  • Accident coverage for company cars is known as commercial auto insurance.
  • Employer's liability insurance shields businesses against legal action originating from employee injuries.

My company is small, so why do I need insurance?

Commercial or business insurance is essential for any company's safety, big or small. There is always the risk of a lawsuit being filed against you in the event of an accident at your company. The fundamental reason why companies need insurance is the high expense of legal defence, medical care, and claims for property damage.

Which insurance you need depends on the dangers you confront. General liability insurance covers things like customer injuries and property damage and is the kind of coverage most companies go for. Whether you run a company, possess a property or car, have workers, or provide professional services, you may require supplementary insurance.

Just what is it that a business's insurance policy protects against?

There is no all-inclusive insurance coverage. There are two main types of coverage:

If your firm is held legally accountable for another party's injuries, property damage, or death, your liability insurance will kick in to help pay the costs.

When a business's property is destroyed, stolen, or both, commercial property insurance covers restoration or replacement costs. If you are the building's owner, it also protects your structure.

Should a company have insurance?

Failing to insure your company in certain places might result in serious legal consequences. Workers' comp insurance is a legal requirement in most states if you have employees. Commercial car insurance is required for any automobiles used in a business capacity.

State legislation may also require certain firms to purchase insurance to operate legally.

Which kind of commercial insurance am I required to have?

Commercial insurance is often mandatory for enterprises in some jurisdictions. For example, firms with employees in most states must carry workers' compensation insurance. Commercial car insurance is required for any automobiles used in a business capacity.

General liability insurance is often included in the conditions of a business lease or client contract, although it is not mandated by law.

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