Commercial Insurance FAQs

Why do I need to buy insurance for my business?
There are many, many scenarios in which commercial insurance will preserve the financial well-being of a company and its owner. Here are some examples of why your business may need to be protected by insurance:

  • A patient sues you for medical malpractice.
  • One of your employees is injured on the job and needs surgery and time off.
  • One of your competitors sues you for defamation when one of your employees makes damaging public statements about them.
  • A customer is injured in your store.
  • One of your employees is stealing products from your warehouse and selling them.
  • Someone has an allergic reaction to food that your company makes.
  • One of your employees drives a client of yours somewhere and both are injured in a car accident caused by your employee.
  • There is a fire at your office and some of your property is damaged, causing you to not be able to get back to work for a few months.
  • An employee has a heart attack right after you fire him.
  • You do not maintain the lights in your employee parking lot and an employee is mugged and injured as she walks to her car in the dark.
  • An employee has embezzled money from your business.
  • Your board of directors has been accused of mishandling donations.
  • A delivery person is injured in your parking lot.
  • Your equipment is destroyed by a flood.
  • You are being sued by breach of contract by a business associate.
  • An employee sues you for wrongful termination.
  • A client drinks too much at a party that you are hosting at your office and causes a car accident on his way home.

What is general liability insurance?
General liability insurance is a type of commercial insurance that covers the legal costs associated with accidents, injuries, claims of negligence, bodily injury, property damage, medical expenses, libel, and slander. Because the process itself of being sued is expensive, commercial insurance is important to have for the cost of defending a lawsuit and settlement bonds and judgments during an appeal procedure.

What is product liability insurance?
When a company produces, distributes, and/or sells a product, it may be responsible for the actual safety of the product. A defect that causes bodily injury, for example, may result in a financial loss that a product liability insurance policy will cover.

What is professional liability insurance?
Professional liability insurance, also known as errors and omissions insurance, covers those who offer some sort of service to a patient, client, or customer, such as a physician. This type of insurance covers professionals for the costs associated with malpractice, errors, and negligence.

What is commercial property insurance?
Commercial property insurance covers anything related to the loss or damage of a business’ property. Depending on your policy, “property” can encompass your office building, your products, your equipment, lost income, and the interruption of your company’s normal operations. There are two forms of commercial property insurance – all-risk policies and peril-specific policies. All-risk policies cover a broad range of perils, while peril-specific policies cover specific incidents like fire, flood, or crime. Peril-specific policies are also utilized by businesses that deal with a specific risk in the operation of their business. Most small businesses are effectively covered by an all-risk policy.