What Are The Most Common Types Of
Small Business Commercial Insurance?

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What are the most common types of small business commercial insurance? General liability, commercial property, business auto and workers compensation insurance top the list.

What Are The Most Common Types Of Small Business Commercial Insurance?

What Are The Most Common Types Of Small Business Commercial Insurance?

The way small business insurance works is quite simple. You pay a premium, which is just a payment, to an insurance company. In exchange, the company promises to pay for any claims you have in the future.

There is no universal policy for small businesses, and that's actually good because if a single policy covered everything that a business might face, the premium would be sky high! So, to help small business owners, insurance companies offer many different policies.

Your business might not need all the different types of small business insurance out there. However, when you think about the fact that about 43 percent of all small businesses have faced a lawsuit, you definitely can see the benefits of getting a commercial insurance policy.

So what are the most common types of small business commercial insurance? Here are some of the policies that most small business owners get:

What Type of Insurance Policy Does Your Company Need?

Unfortunately, none of us can look into the future to predict what type of policies we might need. But, you can consider some of the potential complications you might encounter along the way. What are the most common types of small business commercial insurance? One way to do this is to look at each category, closely. You can also check out what kind of insurance do you need for a small business?

Client&Customer Risk Policies

You need your customers - but interacting with them also puts you at risk of getting sued. Estimates for the average cost of a liability lawsuit for a business is about $54,000. Business insurance, of course, helps you to manage that cost. Here are some scenarios you might find your company in:

It's not always easy to see what one policy covers versus another, but an insurance professional can help give you more clarification.

Employee Risk Policies

Your employees are extremely important for the success of your business, but the more people you hire, the more risk you take on. Even something relatively simple, like an accusation of violating one of your employee's rights, could easily set you back from $8,000 to $30,000 on average. Here are some more scenarios that you might find yourself in:

Property Risk Policies

You have to protect your property, too. What are the most common types of small business commercial insurance? According to research, the cost of a fire is, on average, $35,000 for a small business. Most small business owners don't have that just ready for the taking, so this is where commercial property insurance can be quite helpful. It also helps cover you during inclement weather disasters, theft, and burglary. You can also choose a business owner's policy that bundles both property and general liability insurance, to give yourself and your business more protection.

Vehicle Risk Policies

If you have vehicles as part of your business, you might be confused about what type of coverage is necessary. Many small business owners believe that they can drive their own cars because they have insurance on them. This isn't true, though. According to studies, the average cost to a small business that has a vehicle claim is $45,000. Again, you probably don't just have that lying around. If you fit into these categories, you should definitely consider vehicle insurance for your business:

How Much Does Insurance for a Small Business Cost?

You are probably wondering how much you will spend on a plan like this. Well, it depends. We understand that you probably want a solid answer, but there are a lot of variables. Here are some of the factors that go into your premium.

What Are The Most Common Types Of Small Business Commercial Insurance? - The Bottom Line

We hope this article on what are the most common types of small business commercial insurance? was informative. Don't get stuck paying for legal bills out-of-pocket. Find the right commercial insurance policies that can protect you and your business.

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