Commercial Insurance Policies

Commercial insurance can include the following types of coverage:

• General liability insurance: Covers third-party liability claims for injuries to other people.
• Professional liability and malpractice insurance: Covers professionals against loss due to negligent professional duty, wrongful acts, and advice and services that lead to another person’s loss or injury.
• Product liability insurance: Covers against faulty products and damage, illness, injury or death that may occur from using a faulty product.
• Property insurance: Covers loss and damage to your commercial business property due to fires, storms, and other causes.
• Commercial vehicle insurance: Covers commercial vehicles and drivers for collision, liability, property damage, personal injury, and “other than collision” coverage.
• Workers’ compensation: Covers your employees if they become ill or are injured while working.
• Loss of income: Covers your business expenses, such as rent and employee wages, if you can’t operate your business.
• Key person insurance: Covers the loss of income that may result from the head of the business or key personnel becoming incapacitated or passing away.
• Cybercrime insurance: Provides protection for risks due to Internet use and online communications.
• Records retention policies: Covers loss of important data and financial records.
• Specialty coverage: Insurance that covers various specific business risks, such as those of landlords, farmers, and commercial operations that put on one-day events, such as seminars or concerts.

Business insurance is a contract between the insurance company and the business. In the event of a loss, the business will file a claim. An adjuster will assess the damage and process the claim. The company will then receive the appropriate amount of compensation for the loss, less any deductible. There are different scenarios with regard to business risk and how insurance claims are filed. For instance, if a customer of the company suffers a loss, the injured party is likely to file a claim against the business’s liability policy.

The cost of business insurance varies depending on several factors, including the type of business and the types of coverage needed. A typical cost for business insurance coverage is $200 per month. Costs can be reduced with effective risk management practices and by comparing quotes from different insurance carriers.

Yes, business insurance is tax-deductible as long as the coverage is for the purpose of operating a business, profession, or trade. However, insurance premiums for self-insurance reserve funds or loss of earning insurance policies are not tax-deductible.

Business insurance is required by law under certain conditions. For example, businesses with employees are usually required to carry workers’ compensation insurance. Some states require specified professionals to carry insurance against professional liability. Additionally, several states require that a business have partial wage replacement insurance coverage for eligible employees for non-work-related injury or illness【30†source】

Depending on the nature of your business and any insurance that you are legally obligated to carry, the following types of business insurance should be considered essential:

• General liability insurance: Coverage against accidents, injuries, and negligence claims.
• Product liability insurance: Coverage against product defects.
• Professional liability insurance: Covers professionals against malpractice, negligence, or errors.
• Commercial property insurance: Covers against damage to your business property, such as from a fire or a severe storm.
• Business interruption insurance: Protects your business if you are no longer able to conduct your business because of a loss. It is critical to work with an insurance agent who will get to know your company and ensure that your coverage adequately protects your business investment【31†source】.