Commercial Insurance Ensures You a Smooth Sail in Business

Business owners are rightly celebrated for their energy and dynamism that adds zest to the economy. While businesses focus on growing their profits and acquiring more assets, they also have to be mindful of the risks they can face because of unexpected events. Business operations and profitability can be severely affected by natural events like storms and floods as well as accidents like workplace injuries and burglary. Commercial insurance brokers in Castle Rock, Austin, Seattle and New York offers a steady hand of support to businesses seeking protection from such unforeseen events.

What is Commercial Insurance?

Commercial insurance is a type of coverage which offers protection to businesses against potential losses due to damage to assets or liability claims. Modern commercial insurance originated in Europe to protect the interests of traders and seagoing shipping companies which carried out foreign trade. In today’s age, commercial insurance has kept pace with evolving trends in trade and industry, offering a wide array of solutions for businesses of every kind. Commercial insurance is mainly of two types, property/asset insurance, which protects against loss in value of a business asset and liability insurance which protect the business from a claim from a customer caused by negligence or improper action on part of the business or its employees. Let’s take a look at the different variants of commercial insurance.

Commercial Auto Insurance

It is mandatory for businesses to use vehicles with valid auto insurance in many States, including Colorado, irrespective of whether they are owned, borrowed or leased by the business. Boats and All Terrain Vehicles (ATVs) must also be insured. Colorado has moved from the no fault to the tort system in 2003. Because of this change, owners of vehicles may be held liable for damage or bodily harm caused by an accident to other drivers and pedestrians. Insurers also introduced “medpay” to auto insurance policies ( in 2009. Businesses can consult a commercial insurance broker to get more information about these changes.

Worker Compensation Insurance

In the Colorado State, businesses with at least one employee (whether engaged full-time or part-time) must compulsorily get worker compensation insurance. Worker compensation insurance ensures that in case of a workplace accident, workers are compensated for their hospital treatment along with part payment of their wages.

Professional Liability Insurance

Professionals like surgeons, lawyers and healthcare professionals are required to get coverage under professional liability insurance as a key part of risk management. The insurer offers a monetary payment to professionals in case of a claim from customers for damage caused by negligence or improper action. The payment helps the policyholder protect their reputation and carry on legal proceedings to defend themselves or settle the claim with the aggrieved party.

Lender-required insurance

Financial institutions such as banks require borrowers to get insurance to protect their interest in the business operations or assets which are being financed by the loan. The insurance policy ensures that the lender gets adequate protection in case of the inability of the borrower to repay the loans. Such insurance can be for financed assets such as property, building, factories and vehicles owned by the business.

In addition to the compulsory insurance coverage, businesses have a range of options to protect their operations and assets. This includes business personal insurance, key employee insurance, general liability insurance, umbrella insurance coverage, casualty insurance, flood insurance, farm and crop insurance, spoilage of inventory insurance and inland marine insurance.

How Can Businesses Get the right Commercial Insurance

It can be a daunting task for businesses, especially small and family owned operations, to navigate the complex options available from commercial insurance lines. Businesses can get in touch with commercial insurance agents and brokers to fulfill their coverage requirements. The insurance broker assesses the client’s requirement and suggests the kind of coverage that is suitable for the business. The broker can also suggest strategies for risk management that ensure lower rates, such as anti-theft devices in vehicles and fencing for property. The broker acts thus as the intermediary between the customer and the insurer.