As a business owner, you know how important commercial insurance is, for both your company and the employees who work there. But is your current policy covering everything that matters most to you and your business? If you find yourself wondering whether or not you are adequately covered under your commercial insurance policy, you’ve come to the right place. Our insurance experts at Lifetime are here to explain some of the most essential types of commercial insurance for business owners.
What Are the 4 Most Common Types of Commercial Insurance?
Just like most policies, your best commercial insurance coverage options depend upon your business. So, what do commercial insurance policies cover? The fact is, your coverage needs are just as unique as your business, and building a custom policy is usually the best way to ensure you are fully covered, with no major gaps. To help you narrow your focus, we will walk you through 4 essential types of commercial insurance coverage for business owners.
1. Commercial Property Insurance
Especially if you own your place of business, this type of coverage will help protect your company’s physical assets, from your building and furniture to equipment and inventory. Furthermore, commercial property insurance, (sometimes called “named peril”, “open-peril”, or “special” coverage), helps cover any resulting impact to your business income, in the event of damage due to fire, theft or a natural disaster.
3. Employment Practices Liability Insurance (EPLI)
Offered either as standalone coverage or combined with an existing policy, Employment Practices Liability Insurance (EPLI), helps protect your business against lawsuits filed by employees who allege inappropriate or unfair incidents. Typically, ELPI covers the legal defense fees and settlement costs/damages (up to the policy coverage limit). As a general rule, if you work with people, from employees and vendors to clients/customers, it’s a good idea to include EPLI in your coverage.
2. Liability Insurance
Liability coverage protects you, your employees, and your customers in the event of an accident. This is especially important, as you may be legally responsible if someone’s property gets damaged while visiting your business. Furthermore, if your business is responsible for someone’s injuries (not including an employee’s injuries), liability insurance would pay for their medical bills and lost wages too.
4. Business Owners Policy (BOP) Insurance
Last but certainly not least is your Business Owners Policy (BOP) insurance. Simply put, BOP insurance is a combined package of coverages, from property and liability insurance to crime and more. Similar to bundling your car and home insurance, a BOP is an affordable way to buy small business insurance. Like most insurance, buying policies separately usually means considerably higher prices. That’s why a BOP is a popular way for many shrewd small business owners to get the right coverage at the right price.
Customize Your Commercial Insurance
Regardless of the industry, your small business needs the best coverage. Our team can help you customize your commercial insurance policy to protect what matters most as your grow.
Additional Types of Commercial Insurance
If your business utilizes company cars, trucks, or vans, you may also want to look into adding commercial auto insurance to your policy. Additionally, if you own a business that involves your employees performing more physical labor, it’s probably a good idea to explore workers’ compensation coverage. This would not only protect your employees from the financial strain of damages or injuries incurred on the job, but it would also protect you from taking the financial hit as the owner.
Commercial Insurance Fit for Your Business
There’s no other business like yours – why should your coverage be one size fits all? At Lifetime Insurance Services, we are uniquely positioned as an independent agency to help you shop across multiple providers. With access to many different insurance carriers, we can help you build the custom commercial insurance policy you need to protect your business and the people who work for your business. If you’re ready to find the right coverage at the right price, give us a call today at (972) 771-2622 or visit our website!