Business Insurance Is Essential to Protect Your Investment

With all that you have invested in your business, it would be terrible to have to close your doors due to an unexpected event that causes a financial catastrophe. And yet every year, thousands of businesses of all sizes close across the US because of fires, storms, and lawsuits. In many cases, these closures would have been avoidable with the right insurance coverage.

Commercial insurance is designed to protect large and small businesses from the many risks they face on a daily basis. Without insurance, you’d have to cover financial losses out of your own pocket, which most businesses today can’t do. If you had to shutter your business following a disastrous incident, you would lose your investment of time and capital, and your employees would lose their livelihoods as well.

What Does Commercial Insurance Cover?

There are many types of commercial insurance available, depending on the type of business you operate and where you could be at risk.

Property insurance

If you own your business location, for example, you want property insurance similar to homeowner insurance to cover the structure and its contents in case of fire, natural disasters, vandalism, and theft. You can add wildfire, earthquake, and flood insurance for greater protection based on your location.

Business vehicle coverage

A commercial auto policy covers any vehicles used in your business operation, including personal cars and trucks driven for business use. This is mandatory, just like personal auto coverage. We always recommend full coverage — collision and comprehensive — to protect you in case of accidents, damage, and theft, in addition to the legally required liability insurance.

Liability protection

Speaking of liability, this is where many businesses today are most vulnerable. The average business liability lawsuit costs companies over a million dollars. There are many areas where you could be at risk:

• Non-employee injuries (visitors, customers, contractors, etc.) on your premises
• Errors and omissions, if your mistake carries serious consequences (essential for professionals like engineering firms, architects, accountants, attorneys, etc.)
• Employment practices, such as discrimination, wrongful termination, or harassment
• Advertising, if someone is hurt as a result of your ads
• Directors’ and officers’ statements or actions that cause harm

Commercial liability insurance protects you in case of lawsuits in these matters and can cover settlements, damages, and judgments, as well as legal fees and court costs.

You can increase the amount of liability protection for your business by adding a commercial umbrella policy. This would pick up when you reach the cap of your commercial liability coverage and is recommended for certain industries where risk is higher.

Other types of commercial insurance

There are a few other kinds of business insurance most of our clients carry. These include:

• Workers’ compensation, in case an employee is injured on the job
• Cyber insurance to protect you against hacking, identity theft, data breaches, cyber ransom, etc.
• Loss of income insurance, should events beyond your control mean you can’t operate normally
• Bonds for when your income depends on your word to perform duties
• Specialty insurance for landscapers, barbers, landlords, electricians, etc.

Our Independent Agents Can Make Sure Your Business Isn’t Vulnerable

When you collaborate with independent insurance agents, you get the benefit of personalized service that you don’t get with big insurance companies. We can tailor commercial coverage just for your needs because we aren’t captive to a few generic policies. And we always take the time to make sure you don’t have any coverage gaps that could cost your business money.

To speak with our local independent agents today, call Davidson & Associates Insurance at 360-514-9550. Or reach out online to ask questions or get your policy started now