Common types of commercial insurance

If you’re looking for a commercial insurance policy, it’s easy to get confused. There are a dizzying number of types available, and you need to make sure you buy the right ones for your business needs.

Never fear—we’re here to help. We’ll walk you through each one.

Property

Property insurance covers your property—simple enough. But you can’t just buy an all-purpose policy and expect it to cover everything. This kind of insurance may need extra coverage tacked on for different situations. Here are some of the common add-ons:

  • Boiler and Machinery: This is also called “equipment breakdown” or “mechanical breakdown” coverage. Depending on the situation, it covers your equipment accidentally breaking down and may include business interruption and property damage coverage.
  • Business Interruption: This insurance will cover your expenses if property damage forces you to lose business.
  • Crime Insurance: This covers crimes against your property—generally any kind of theft.
  • Debris Removal: Debris removal insurance will cover the cleanup costs if you have a natural disaster. Property insurance doesn’t automatically include coverage for the removal of debris, even if it covers rebuilding.
  • Fidelity Bonds: If a bonded employee steals from your business, this covers the losses.
  • Glass Insurance: This covers damage to plate glass windows.
  • Inland Marine: Inland marine insurance covers goods as they’re transported or temporarily stored. These policies include builder’s risk (construction in progress), Bailee’s coverage (other people’s property you’re temporarily holding, such as a repair shop), installation, and motor truck cargo.
  • Ordinance/Law: This coverage will reimburse you for the gap between the current value of your building and the replacement value if it’s partially or fully destroyed.
  • Tenant: If you’re in a rented space, you’ll need coverage for any damage to improvements or damage caused by your employees.

Liability

Liability coverage covers you for third-party injuries you cause. It also covers defense costs if someone sues you for those injuries. This can also include some specialized types, including:

  • Automobile: An auto policy covers your fleet vehicles for theft or damage and any driver-caused incidents with property or people.
  • Cyber: This covers damages from electronic break-ins, computer breakdowns, and other technical issues.
  • Errors and Omissions: This will keep you from liability for mistakes that stem from a third party, generally for legal documents.
  • Malpractice: Common for doctors, accountants, real estate agents, and architects, this insurance covers losses when a professional’s work falls below a reasonable standard for their field.
  • Worker’s Compensation: This policy covers an employee’s injuries at work and often keeps employees from suing the business for liability.

The right insurance for you

There are umbrella policies that include several common commercial insurance types, but you need to make sure you have the right coverage.

Your insurance policy has to be tailored for your business. We can help. Contact MVP Insurance today and see what we can do for you.