There are several different types of commercial insurance that help protect business owners. Some cover general liability, while others protect against malpractice suits and Internet piracy. Depending upon the nature of the business and the owner's financial resources, one or more forms of commercial insurance policies might be carried.
General liability insurance protects a business against loss in the event of accidents, personal injuries, and negligence. This type of policy covers payments due to medical bills, legal fees, damage to property, and legal judgments. Most business owners opt to carry general liability coverage.
A second type of commercial insurance is property liability insurance. It covers damages caused by a manufacturer's products. Wholesalers, retailers and distributors typically carry property liability coverage in case one of their products causes injury. A manufacturer is considered to be responsible for the safety of the general public by providing products and services that are free of harmful defects.
Doctors and other medical practitioners are good candidates for professional liability insurance. It protects against claims and accusations of malpractice, which may occur during the administration of professional services. Carrying professional liability insurance may be a requirement in order to practice medical professions in some local areas.
Commercial property insurance covers property damages and losses that occur as the result of natural disasters, destruction of property by third parties, and theft. The name of this type of commercial insurance is somewhat misleading as "property" often refers to loss of income, loss of sales and company documents in addition to physical buildings. All-risk policies cover a broad spectrum of possible incidents while peril-specific policies only cover the losses that are related to what is specifically listed in the coverage.
Worker's compensation is a form of commercial insurance that businesses are required to carry in most local areas of operation. It covers the lost wages and medical bills of employees who become injured while on the job. The requirements for worker's comp insurance vary by local jurisdiction.
Small business owners who work out of their homes may choose to carry home-based business insurance. It covers losses related to the business that a standard homeowner's policy doesn't cover. Internet business insurance may be purchased by small web-based business operators to cover losses due to information thieves and computer viruses. Larger companies might carry this type of insurance as well, if they heavily rely on Internet technology to conduct marketing transactions. Smaller businesses run by one or two key persons could also carry key person insurance, which designates the company as the beneficiary to all assets in the event of the key person's death.
