Business & Commercial Insurance

Business & Commercial Insurance Information

Most businesses need to purchase at least the following four types of insurance:

• Property Insurance
• Liability Insurance
• Business Vehicle Insurance
• Workers Compensation Insurance

Property Insurance
Property insurance compensates you if the property you use in your business is lost or damaged as the result of a covered “perils” such as fire or theft. Property insurance may cover a building or other structure and may also cover personal property, such as office furnishings, inventory, machinery, computers and other items vital to your business operations. Property insurance can do more than protect your physical assets. It may also compensate you for loss of income during a period when you are getting the business back in operation after a loss. Property insurance may include coverage for equipment breakdown, debris removal after a fire or other destructive event, some types of water damage and other losses.

Liability Insurance
Any person or business can be sued, whether the claim has merit or not. Someone may claim that your business caused them harm as the result of a defective product, a service error or disregard for another person’s property. Or someone may allege that you created a hazardous environment. Your liability insurance pays damages for which you are found liable, up to the policy limits, as well as attorneys' fees and other legal defense expenses. It also pays the medical bills of any people injured by your business.

Business Vehicle Insurance
If you use your own car for business purposes, discuss this with your agent. Many personal auto insurance policies exclude coverage if the vehicle involved in an accident is used mainly for business. A business auto policy provides coverage for autos owned by a business. The insurance pays any costs to third parties resulting from bodily injury or property damage for which your business is legally liable, up to the policy limits. Depending on what kind of coverage you buy, the insurance may pay to repair or replace your vehicle because of damage resulting from accidents, theft, flooding and other events.

Workers Compensation Insurance
In all states but Texas an employer must have workers compensation insurance. Workers comp insurance pays for medical care and may replace a portion of lost wages for an employee who is injured in the course of employment, regardless of who was at fault for the injury. When a worker dies as a result of injuries sustained while working, the insurance provides compensation to the employee’s family.