Protect your business and commercial vehicles
Commercial insurance is a must-have for anyone with a business, whether you’re someone planning to start a new trade or who just wants to insure an existing one against potential risks and dangers.
From workplace accidents to cyber security attacks, businesses are dealing with financial disasters left and right. What separates those who survive from those who don’t is their degree of preparation.
This article will discuss what commercial insurance is, who needs it, and what you can expect when getting your policy.
What is Commercial Insurance?
At its simplest, commercial insurance helps businesses by shouldering damages that happen because of unavoidable scenarios in exchange for a monthly premium.
Due to this, commercial insurance has a significant role in keeping businesses safe from financial harm. After all, businesses regularly deal with potentially-threatening situations.
No matter what you do to prevent it, a system as complex as a commercial business will inevitably experience hiccups. It may be something as simple as delayed deliveries or as severe as a workplace accident. Whatever it is, it’s something every business has gone through before and will go through again in the future.
However, these incidents can quickly become serious financial burdens.
According to the National Institute for Occupational Safety and Health (NIOSH), about 156 out of every 10,000 full-time workers suffered severe injuries that warrant the emergency room in 2019. A more recent 2021 study revealed that severe injuries cost US companies billions of dollars in damages and lost productivity.
And that’s just one possible scenario that involves commercial liability. Many other situations can spell financial disaster for an unprepared business.
That’s why commercial insurance exists: as a safety net for these kinds of scenarios.
But with all the different choices out there, how do you pick the best type of commercial insurance for you?
Here at Magnum Insurance, we’ll help you figure out the best commercial insurance for your specific needs and budget.
Commercial Insurance vs. Other Types of Insurance
Commercial insurance insures businesses against various financial risks that may happen during day-to-day operations. In this section, we’ll discuss what commercial insurance coverage is.
The most common types of insurance will most often insure only the policyholder.
Sometimes, personal and auto insurance plans may also insure other people, but only within set limits (for example, household members) and never anyone who’s not directly related to the policyholder.
However, commercial insurance coverage is different because it covers multiple individuals. Whether you’re a small business with less than a dozen close-knit staff or a large organization with hundreds of employees, there’s a type of commercial insurance that can accommodate all your stakeholders.
Personal insurance tends to have a lower coverage limit than commercial insurance because it covers only a definite asset. Health insurance protects your physical health, home insurance protects your home, and car insurance covers your vehicle.
However, commercial entities have a wide range of assets that are involved in their daily operation. Whether it’s physical properties, human assets, or digital resources, damages to any of these can bring financial harm to commercial entities.
This is why commercial insurance has a broader coverage limit, especially when compared to other types of insurance policies.
Lastly, commercial insurance also tends to be more specialized to the needs of the business. Commercial insurance agents are trained to determine the different risks a company faces in its day-to-day operations, and a policy is explicitly structured to cater to those harms.
This is different from other types of insurance. Although there is some small degree of personalization in homeowners or auto insurance, these are generally one-size-fits-all policies.
At Magnum Insurance, we’ll make sure that you get the right policy tailored to your specific needs.
There are many types of commercial insurance, all of which cover many different situations. In this section, let’s discuss some of the most common types of commercial insurance.
Commercial Auto and Equipment Insurance
This type of insurance policy covers vehicles and equipment used for business operations. This could range from company cars and delivery trucks to industrial equipment to office workstations.
Commercial Property Insurance
Just like auto insurance and equipment breakdown insurance, property insurance insures business owners against the cost of unexpected damages to physical properties. This could include company warehouses, office buildings, or even the place of business itself.
Coverages could include natural disasters, fire, theft, vandalism, and more.
Workers Compensation Insurance
This form of commercial insurance covers the cost of a worker’s compensation due to a work-related incident.
Designed to protect businesses against lawsuits and the cost of medical care of the injured employee, workers’ compensation insurance is typically mandated by law.
Workers’ compensation insurance is often crucial in businesses with a high risk of personal injuries, such as construction, engineering, or manufacturing.
Cyber Liability Insurance
A relatively new type of commercial insurance, cyber liability insurance is becoming more popular among business owners because of the growing dangers of cyber-security attacks.
Cyber liability insurance ensures businesses against the financial costs of cyber security attacks that expose stakeholders’ data. Some malware may hold important, sensitive information for ransom, while others will simply steal sensitive information.
When this happens, cyber liability insurance will typically cover the cost of compensation for the affected parties.
Business Owners Policy (BOP) Insurance
This type of commercial insurance policy bundles several types of commercial insurance into one comprehensive package, offering discounts. The types of insurance most often sold together under this package are general liability, crime, and property insurance.
Choosing the Right Commercial Insurance for your Business
In something as complicated as a business, something is bound to go wrong sooner or later. And when it does, it’s best to be prepared.
With many different kinds of commercial dangers arising, it’s never been more critical to choose the right commercial insurance policy for your company.
At this point, you might be wondering how much is commercial insurance.
Don’t worry—Magnum Insurance guarantees high-caliber insurance policies at prices that work for you. All you have to do is contact us, and we’ll do all the heavy work for you.
Get the perfect commercial insurance for you today here at Magnum Insurance!
Magnum Insurance makes Commercial Insurance easy
Insurance should be easy, and with Magnum Insurance, it is. Get your online insurance done at your convenience now!
Flexible payment options including cash. Call, visit a store, or make a payment online by logging into your account.
Manage your policy. File and track a claim. Do it all with a few taps on your smartphone.
No one likes to file or manage a claim. That’s why we make the process easy with online forms and dedicated agents.
Get a free Commercial Insurance quote today
Talk to an agent today by giving us a call or visiting one of our offices located across Illinois and Indiana for a commercial insurance quote.
Is there a local Commercial Insurance agent near me?
Try our Location Finder to find the nearest agent near you.