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How Commercial Insurance Protects Businesses From Financial Loss

January 09, 2023 | Insurance 101

This article was originally published October 04, 2021

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Every business faces risk—things like employee injuries, visitor slip-and-fall accidents, professional "errors and omissions," and work-related auto accidents. The liability and financial loss from these types of incidents and many others can devastate a small company that isn’t properly insured.

Commercial insurance—also called small business insurance—can help protect your company from financial hardship if the unexpected happens.

Commercial insurance includes policies such as:

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    Workers’ compensation: Protection for your employees and your company if someone is injured or becomes ill on the job.
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    Professional liability (also called errors & omissions insurance): Important for businesses that provide professional advice or services in the event of actual or alleged mistakes.
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    General liability: Coverage for customer property damage, non-employee bodily injury, product liability, libel, slander, and copyright infringement.
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    Business owners policy or BOP (also called property & liability insurance): All the protection of a general liability policy plus protection for your building or leased space, its contents, and business income in the event of a direct physical loss or damage to property at your insured location.
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    Commercial auto: Protection for company vehicles used to conduct business.
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    Umbrella: An extra layer of financial protection for claims that exceed an underlying biBERK policy.

Depending on the kind of work your company does, you may not necessarily need all of these policies. But having the right amount of the right types of coverage is crucial.

Not only can commercial insurance policies pay for things like damages and medical costs, they may also cover legal fees, settlements, and jury awards. That includes legal fees related to baseless claims.

Finding the Right Commercial Insurance Company

In order to be confident that your business is properly protected, you want to work with the right provider. Your commercial insurance company should be one with extensive expertise, strong financial backing, and a positive reputation. 

At biBERK, we’re proud to say we meet those requirements. As part of Warren Buffett's Berkshire Hathaway Insurance Group, we draw on more than 75 years of insurance experience, and we had the resources to pay $38 billion in claims in 2020. Together, we also have millions of satisfied customers.

Plus, our direct-to-you model eliminates “middlemen” and brokers, which means you can save up to 20% over policies from other insurance companies.  

Get a Commercial Insurance Quote and More

While commercial insurance provides powerful protection for businesses, it’s surprisingly affordable. You can find out what the different policies you need will cost by getting a free commercial insurance quote online from biBERK in minutes. Just provide some basic information about your company and we’ll generate a quote. And if you have questions, our licensed insurance experts are happy to help you get the right coverage for your business.

Then, if you choose to buy insurance, you can do that on our website, too. Your purchase of the policy is immediate with coverage beginning on the chosen effective date, and you can obtain a Certificate of Insurance (COI) for your records or to send to a client or landlord who requests one.  

Other online capabilities can simplify the management of your policies, as well. For example, you can make a payment online or set up autopay for even more convenience. You can also report a claim on our website quickly and efficiently. 

Beyond Commercial Insurance: Other Ways to Protect Your Business From Liability

Having appropriate commercial insurance is vital. But even with coverage in place, you can and should take steps to minimize your risk. For instance, working to improve the safety of your operations is important. You can do that through things like mandatory training and incentive programs. Preventing injuries and property damage helps reduce the chances of a lawsuit. 

Establishing good relationships with your customers or clients, providing them with high-quality products and services, and resolving any issues that arise quickly and in a way that’s fair to everyone involved is important, too. Happy people tend to be less inclined to take legal action and more inclined to work things out with you.

Ultimately, the combination of comprehensive commercial insurance coverage from a trusted company and good, safe business practices is the best way to protect your company.