6 Simple Ways to Tell That You Need Commercial Insurance
What if your business was in danger and you didn’t even know it?
Commercial insurance coverage helps protect your business. Unfortunately, many business owners don’t understand the benefits of this insurance and whether they need it for their business or not.
Wondering if you need commercial insurance for your own company? Discover some simple ways that you can tell if commercial insurance is right for you!
1. Commercial Insurance Is Required by Your Lender or Landlord
In many cases, a business does not have a choice about whether or not to get commercial insurance. That is because such insurance may be a requirement from either their lender or landlord.
Those who purchase a physical office for their business (more on this soon) usually have to get funding from the lender. As with traditional mortgages, lenders may require you to take out a commercial insurance policy to protect your workspace while you are paying it off.
If you don’t purchase a physical office, you may lease one instead. In that case, your landlord is likely to require you to take out a commercial insurance policy. This helps to protect the landlord’s investment and provides him with peace of mind that the property is covered against theft (the most common small business claim).
2. If You Use Your Vehicle to Conduct Business, Consider Commercial Insurance
In addition to commercial property insurance, you can take out commercial vehicle insurance. How can you tell whether you need this coverage? If you use a vehicle to perform services for your job, you need commercial vehicle insurance.
This insurance works much like the automobile insurance you have for your own car. It provides a mixture of liability, collision, and comprehensive insurance, giving your work vehicle what is known as “full coverage.”
When you take out this insurance, you can get coverage for multiple vehicles. These can be cars you own, lease, or even hire. The insurance extends to those who drive the vehicles. This commercial insurance also helps cover the medical expenses for any occupants of the car who get injured while driving.
3. Businesses Need Commercial Liability Insurance
Every business owner should be worried about their general liability if someone gets hurt on their property or gets sick after eating their product.
Let’s say that somebody (perhaps a customer, or maybe someone asking about a job) visits your workplace. They end up slipping on a wet floor and getting injured. If they believe the accident is your fault (perhaps because there was no wet floor warning sign), they can sue you.
Here’s the thing about that kind of lawsuit: Even if you win, the legal costs of defending yourself could be enough to destroy your business. With the liability protection of commercial insurance, you can take care of the medical expenses of the injured party and pay for your court costs.
Additionally, commercial property insurance protects your business in other key ways. For example, you are covered if your ads accidentally contain copyright infringement. You also have protection against libel, slander, and business disparagement (which further protects you against litigious third parties).
Another good option for business owners is commercial umbrella insurance, which adds another layer between you and financial ruin in the event of a lawsuit.
4. You Regularly Transport Tools and Equipment for Work
Do you or your employees regularly use company vehicles to drive tools and special equipment around? In that case, you definitely need the protection offered by commercial vehicle insurance.
Among other things, commercial auto insurance helps protect the tools and equipment inside the vehicle. If the tools and equipment are expensive enough, then you could be a single car accident away from having to pay thousands of dollars to replace everything.
Such coverage is especially important if employees must frequently drive tools and equipment from one place to another. These back-and-forth trips make an accident likelier to happen. In addition to the damage to your personal property, your employees in the car may get seriously hurt in an accident.
With the right commercial vehicle insurance, you can protect your employees and your property. This provides the peace of mind you need to effectively run a business.
5. You Have Employees Who Use a Company Vehicle
Above, we emphasized how commercial auto insurance can help protect your employees. If your employees ever drive a company vehicle, though, then this commercial insurance also helps protect you.
That’s because you never know when one of those employees will cause an accident while driving the company car. When this happens, it likely won’t be the employee who has to pay for the damage they caused. Instead, it will be you and your company that are ultimately liable.
Without good commercial vehicle insurance, you are at serious financial risk whenever your workers step behind the wheel. With the insurance, though, you have the protection you need.
6. If You Regularly Transport Goods or People, Look Into Commercial Auto Insurance
The more time you or your employees spend on the road, the likelier you are to get into an accident. That’s why anyone who regularly transports goods (such as a delivery business) or people (such as a rideshare business) needs the protection of commercial vehicle insurance.
As we covered before, this insurance helps protect anything you might be transporting or delivering. It also helps pay for damages caused to other people’s property as well as anyone involved in the accident.
At the end of the day, transporting goods or people without commercial auto insurance is a risk you can’t afford to take!
Get the Best Commercial Insurance Today!
Now you know how you can tell when your business needs commercial insurance. But do you know where to find the best prices and coverage that you deserve?
Here at InsureOne, we’re here to take care of all your commercial insurance needs. We are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our convenient nearby offices!