What Is Commercial Insurance?
Commercial insurance provides coverage for businesses against the financial consequences of unexpected events, including property damage and liability. Learn about the different types of coverage available.
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Business owners need to protect their assets and defend against liability issues but they also need to be mindful of their bottom line. However, it’s challenging to know if you’re overpaying for commercial insurance since there are so many variables. Rates are based on industry, business size and even market factors out of your control, like inflation. That's why you need to shop around.
Before we explain how SmartFinancial streamlines the insurance shopping process and helps save you money, let’s look at the steps you’d have to take if you went the usual route.
Before you buy business insurance, you will need to assess your business’s unique risks so you can determine which types of coverage you need. While general liability insurance is recommended for all businesses, you may need certain coverages unique to your daily operations.
For example, if you operate an accounting business, then you will likely need professional liability insurance for liability risks resulting from one of your employee’s negligence. On the other hand, if you sell mountain climbing equipment, then you may want product liability insurance in case a customer gets injured using your merchandise. Should your business use company vehicles, whether it's for transporting inventory or traveling to client locations, then you will also need commercial auto insurance.
In addition, you will need to decide what coverage limits you should buy. For example, if your business uses expensive equipment, then you may want higher property coverage limits. If you operate a retail store and experience lots of customer traffic, then it is recommended that you increase your general liability limits.
To get the most accurate insurance quote, you will generally need to provide the insurance company with the below information to start. Therefore, you should make sure you have this documentation handy before you start looking through company websites and talking to agents on the phone.
Next, you will need to get a quote by contacting each insurance company you’re considering and providing them with the information compiled in the last step. Speaking with a representative can be a good idea since they will ask you questions about your business and help ensure your business is adequately insured. It is generally recommended to get quotes from three to five carriers to get an idea of how much it costs to get the coverage you want.
That said, price is just one factor among others that you should consider when choosing a business insurance carrier. Don’t forget to look at customer service ratings and consider asking what providers your fellow business owners are using. You’ll want to strike a good balance between coverage, price and customer service.
After researching and choosing a carrier, you can contact them and discuss the next steps for making your first payment and when you want your coverage to begin.
While talking to insurance companies individually can provide a personalized shopping experience, it can get time-consuming — especially if you plan on contacting five or more carriers. Running a business already keeps you busy. Don’t spend more time than you have to shopping for commercial coverage.
Good news for you: SmartFinancial makes shopping for commercial insurance fast and simple.
With SmartFinancial, you get to skip the phone calls and hold times. Instead, you complete one questionnaire about your business, coverage needs and budget and we’ll match you with a tailored insurance policy.
We’ll ask you questions about yourself and your business, including its industry, how long it has been in operation, number of employees and annual revenue.
We’ll review offers from over 200 insurance companies large and small and then narrow them down based on the answers you provided in the survey.
Choose the business insurance plan that best suits your coverage needs and bottom line. Easy, right? Oh, and 100% free, of course.
Below are a list of factors that insurance companies use when calculating your insurance premium:
Commercial insurance provides coverage for businesses against the financial consequences of unexpected events, including property damage and liability. Learn about the different types of coverage available.
A premium is a monthly payment you must make in order to keep your commercial insurance policy active.
Learn Moreou are responsible to pay a share towards covered repairs and losses. You choose the deductible when you buy a policy.
Learn MoreA policy limit is based on how much insurance you buy. You are responsible to pay the remaining balance if you reach limits.
Learn MoreNot everything is covered, so make sure to ask about exclusions and see if there are any riders to cover those exclusions.
Learn MoreWhen you file a claim, you are asking the insurance company to help you pay for a loss. Only losses due to covered perils are eligible for claim settlements.
Learn MoreWith a general liability insurance policy, you are covered for bodily injuries if someone is hurt at your place of business.
Learn MoreCyber insurance is essential to safely running a business and will cover data breaches and other security issues.
Learn MoreWhether you own the building or simply own business equipment, you’ll need personal property coverage.
Learn MoreYour personal auto insurance is not suitable for a company car or fleet. You’ll need commercial auto insurance in order to be covered for losses.
Learn MoreWithout equipment breakdown insurance, you’ll have to pay for repairs in full if your business equipment breaks down.
Learn MoreIn every state, workers compensation insurance is legally required for any business with at least one employee other than the owner.
Learn MoreIn the event of a data breach or other cyber attack, cyber liability insurance helps cover the cost of safely restoring your operations.
Learn MoreMany small and medium size businesses buy a BOP policy, which bundles the most essential types of commercial insurance.
Learn MoreIf your business is forced to shut down due to a covered peril, business interruption insurance will help you cover losses.
Learn MorePersonal insurance does not cover losses resulting from business activity. For example, you will need commercial auto insurance if you get into a car accident while transporting inventory for your business since this will not be covered by your personal auto insurance policy.
Some commercial policies can cost more than their personal equivalents. For example, commercial auto insurance can carry higher limits than a personal auto policy and will cost more as a result.
Workers’ compensation and commercial auto insurance are required by law in most states if you employ workers and have company vehicles. In addition, general liability insurance is recommended for most types of business, with many small business owners getting this coverage bundled into a business owners policy.
Answer a few questions and let Penny find the best rates in your area.