What Is Commercial Insurance Coverage? (2024)

What Is Commercial Insurance?

Commercial insurance protects businesses from different claims and risks, such as:

• Bodily injury
• Cyberattacks
• Data breaches
• Property damage

Picking the right types of coverage means your company will have a customized policy that meets your unique needs. To learn more, get a quotetoday.

Types of Commercial Insurance Policies

Commercial Auto Insurance

Commercial auto insurancehelps cover you and your employees on the road if you drive business-owned vehicles for work. In most states, you’re required to have commercial auto insurance if your business owns and operates any vehicles for business reasons. This coverage can help pay for property damage and medical expenses from a fender bender to a fatal accident.

Commercial Property Insurance

Commercial property insurancecan protect your company’s building that you own or rent and the equipment you use to operate. What does commercial property insurance cover? This coverage helps cover your property in the event of a fire, burglary, theft, windstorm or lightning. If you run a home-based business, commercial property insurance provides more coverage than what you’d have with a typical homeowners insurance policy.

General Liability Insurance

General liability insurancecan help cover claims alleging that your company caused bodily injury or property damage to someone else. For example, if a customer slips and falls inside your business and needs medical treatment, your general liability insurance policy will help pay for it. Or if one of your employees damages a customer’s wall while working inside their home, your policy can help pay for the repairs.

Workers’ Compensation Insurance

Many states require businesses to have workers’ compensation insuranceto help protect their employees. Workers’ compensation insurance gives your employees benefits to help them recover from a work-related injury or illness. Workers’ compensation can also help with medical expenses, rehabilitation and lost wages.

Data Breach Insurance

Data breach insurance, known as cyber insurance, can help protect your small business from risks associated with a data breach if confidential information gets lost or stolen. Cyber insurance can also help cover your costs to notify impacted individuals and offer credit monitoring services.

Business Income Insurance

Business income insurance, known as business interruption insurance, can help replace your lost income if you can’t operate because of covered property damage. For example, if your business is unable to operate and generate revenue due to fire damage, this insurance helps cover your lost income until you can reopen again. This can help you continue to pay your operating expenses, like payroll and monthly bills.

Business Owner’s Policy (BOP)

A Business Owner’s Policy (BOP) combines three essential types of liability coverage: commercial property insurance, general liability insurance and business income insurance. A BOP helps cover your business from claims such as fire, theft, bodily injury or business property damage. It can protect your business against claims that are related to your business operations.

Common Questions About Commercial Insurance Coverage

How Much Does Commercial Insurance Cost?

Commercial insurance costs vary because every company is unique. Insurance companies use different factors to determine costs, which can include:

• Company type
• Number of employees
• Location
• Payroll
• Years in operation
• Risk exposure

The factors an insurance company uses can depend on the type of commercial insurance. The best way to find out your company’s commercial insurance cost is to get a quote.

What Is an Example of a Commercial Insurance Plan?

If you’re trying to find the best commercial insurance for your company, learn more about The Hartford’s offerings and get a quote.

What Should I Know About Commercial Insurance Coverage?

When you get commercial insurance coverage, your policy will include details about how it works. You’ll see terms that you may not be familiar with, but we can help.

• Premiums: This is the total cost your company pays to an insurer to get coverage. You may pay this cost upfront or monthly.
• Deductibles: The amount you’re responsible for before insurance provides coverage. For example, if your deductible is $500, that’s how much you must pay when filing a claim to get coverage.
• Policy limits: This number is the maximum amount your insurance company will cover for a claim.
• Exclusions: Events or causes of loss listed in an exclusions list means your insurance company won’t cover it.

What Is the Difference Between Commercial and Personal Insurance

Commercial insurance is designed to help protect against the risks associated with running a business. A commercial insurance policy can cover more than what your personal insurance does, especially when it comes to protecting your business and its assets. Personal insurance policies help protect your personal assets, like your home and car, while a commercial insurance policy helps protect your business’ assets, like your employees, property and company vehicles. If you own a business, you may be required by state law to have certain commercial insurance coverages, like workers’ compensation and commercial auto insurance.

Get a Commercial Insurance Quote Today

If you’re still wondering about the commercial insurance definition or have questions about what is covered under commercial insurance, we can help. We’re an experienced insurance company and our specialists can help you get the coverage you need. Whether you need to create a policy for your business or are looking for help to file a claim, we’ve got your back.