What is commercial Insurance?

Commercial or business insurance is insurance coverage for your business. If you own a business, you have to protect it just like you protect your home under the home insurance policy.

There are five pillars of Commercial Insurance. These are Property (building and contents), General Liability, Equipment breakdown, Business Interruption and Crime. You should cover all the risks to make sure that your business continues to function even after a major loss.

Why do I need Commercial Insurance?

If you own and operate a business, you are dealing with customers. Depending on the type of business, the chances are that customers come to see you at your location (eg. Retail store, hotel, lawyers, accounting). Perhaps you go to work at their location (contractors, landscapers, electricians) or you supply things to others (manufactures, wholesalers, packagers etc.) You have the risk of fire, windstorms, burglary, and being sued by others.

As a business person, it will depend on your risk tolerance. You will have to decide if you would want to pay for a loss from your personal saving or if you would want that risk transferred to an insurance company so that they would pay it on your behalf.

If there is a fire and your business operation stops. Who will replace your property?

What if someone sues you? Who will pay for the defense costs and the amount you are legally responsible?

What if your machinery or computer systems breakdown? Who will pay the machinery repairs and loss of income?

Who will pay for the loss of income/cash flow?

What if your employees steal from you or there is theft, who will pay for that?