Commercial Insurance

What Does Commercial Insurance Mean?

Commercial insurance refers to a policy designed to protect a business from future risks. Coverage may include business property damage, loss of income due to business interruptions, legal issues, theft, and employee grievances. Exactly which coverages a business needs depends on industry and size, so owners usually put together a package from several types of business insurance rather than buying one catch-all policy.

Insuranceopedia Explains Commercial Insurance

When choosing a commercial or business insurance policy, key considerations will always center on the potential for business interruptions that could result in loss of income or even the closure of the business. It is prudent to anticipate future risks commonly associated with the business and select a policy that covers those risks. Premiums depend on industry risk, claims history, revenue, and location, so the cost of small business insurance varies widely between companies. For example, an apartment building owner who leases to tenants can protect themselves by purchasing property and liability insurance, which would provide coverage in case of fire that damages the property or causes physical harm to tenants. This kind of bundled coverage for rental real estate is usually sold as commercial landlord insurance, and it handles both physical damage to the building and injury claims from tenants or their guests.