Different Types of Commercial Insurance Policies

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Businesses use commercial insurance to balance their risk profiles and ensure continuity of their operations in case of any unexpected event. Insurance brokers offer a wide range of commercial insurance policies that are tailored as per the requirements of businesses of all kinds. Even as business owners look to grow their firms, meet their customers’ requirements and garner more profits, they should be aware of the types of commercial insurance that are available to cater to their specific needs.

Worker Compensation Insurance

Worker Compensation Insurance is mandatory in some states such as Colorado for businesses that have at least one part time or full time employee. In case of an accident while working, the insurance provides medical aid and part wages of the employee.

Auto Insurance

Businesses in Colorado must use vehicles that have valid insurance policies. This includes vehicles owned, borrowed or leased for business operations. As Colorado moved from the no fault system to the tort system in 2003, drivers and owners of vehicles can be held responsible to compensate other drivers and pedestrians in case of an accident or bodily harm. While the state has set minimum liability requirements for auto insurance, policy holders can opt to get policies with higher limits to protect against legal action in case of accidents. Contact your commercial insurance broker in Colorado to know more about the current liability requirements for your region.

Auto Insurance

Professional Liability Insurance

Persons engaged in certain professions (like doctors, lawyers and financial advisers) have to get professional liability insurance compulsorily in the state of Colorado. Professional liability insurance protects the policy holder from financial damage and loss of reputation in case of financial claims arising from improper actions or negligence on their part.

Lender- Required Insurance

Businesses which take loans from banks or other financial institutions to buy assets for their operations are required to insure their assets against damage to protect the lender from financial damage in case of a default by the borrower or damage to the asset. An example of such assets could be shops or buildings owned by the business which require property insurance.

Business Liability Insurance

Business liability insurance protects the business from financial claims arising because of its commercial operations. It is also known as casualty insurance. Both the business and their customers are protected by this type of insurance, as the business gets paid to defend its assets and reputation while customers get compensated for the damage suffered.

Business Property Insurance

The real estate assets owned by a business like land, realty and buildings can be protected with property insurance. The insurance covers against loss to the real estate assets caused by natural events like extreme weather and accidents like fire or other damage. Flood insurance is usually not covered by such policies, so a separate policy can be issued to cover buildings against flood damage.

Key Employee Insurance

Businesses may have employees who are critical to its business operations like senior managers, designers or controllers. Keyman Employee insurance protects companies against the risk and costs involved with replacing a critical employee due to reasons like attrition, health issues or death. The policy pays for the cost of talent acquisition, training and assurance to customers regarding the viability of the business.

Inland Marine Insurance

When businesses deploy assets and products away from the business premises, inland marine insurance ensures that they are protected from loss or damage during operation or transit. Typical examples of assets covered by inland marine insurance are construction equipment, material ready for installation by employees or a contractor and other moveable goods owned or used by the business for its regular work.

Crop and Farm Insurance

Farmers and businesses engaged in agricultural activity can protect their assets like produce, farm animals, and agricultural equipment for events like crop failure, pest damage and storms with crop and farm coverage.

Commercial Umbrella insurance

Businesses can opt to get a range of insurance coverage combined with liability insurance as a single policy. Some of the different additions include personal injury, negligent action coverage and extension of coverage to vendors, employees and customers.