Why does your Business need a reliable Commercial Insurance Plan?

ShiftRisk Team
July 25, 2022

Businesses are constantly faced with risks that can have a negative impact on their operations and bottom line. And that's where commercial insurance plans come into play. It is also known as liabilities insurance  which enables business owners with safety nets and protects their interests during times when things go out of control. The commercial insurance plans cover property damage, vehicle protection, data loss, workers' compensation and more.  

Let’s learn more about how having commercial business insurance can save you from unforeseen events.:

What is Commercial Insurance?

Commercial insurance protects businesses, freelancers, and even independent contractors against liability lawsuits, property damage, cyberattacks, and other risks that could devastate your company. 

Commercial insurance, also called business insurance, can shield your business from costly risks like injuries, theft, property damage, and lawsuits. 

A small business takes a lot of time, energy, and money to run successfully. And as a business owner, you want to protect that investment and grow your revenue. 

Small business owners can purchase different types of commercial insurance coverage, which compensate them for financial losses arising from a variety of situations. Generally, commercial insurance protects a business from standard risks or liabilities, including:

  • Client lawsuits
  • Property theft and damage
  • Customer or employee injury
  • Unexpected events

Types of Risks Faced by Businesses

Not one, not two, but a business faces plenty of internal and external risks. And to get the privilege of being insured against them is nothing less than a blessing. 

Here are the most common risks faced by Businesses that come under the consideration of commercial insurance:

1. Reputational Damage

The reputation of your business is your biggest asset. Putting it at risk is not a wise choice. Cover it with Professional Liability Insurance which considers advertising mistakes, reputation damages, Etc.

2. Liability for Injuries Or Damage 

There can be instances when your employees may sue your company for property damage, injury, libel, or slander. In those cases, being covered with commercial insurance can help you sneak out of major risks.

3. Vehicle Protection

Safeguard your vehicles used for business purposes with Commercial auto insurance. Damages to your business vehicle indicate a heavy cash outflow from your pocket.

Commercial vehicle insurance covers incidents like theft, damage, accident, etc.

4. Worker's Compensation Claim

Workers' compensation insurance protects your business from litigation. It is for situations when an employee gets injured on the job. The insurance covers the company for litigations, no matter who is at fault.

5. Data Breach Recovery

Data is the most expensive thing today, and so is its recovery. Cybersecurity insurance can save you a good amount of money while you go through the process of data recovery.

6. Environmental and Pollution Liability Losses

Every business has a responsibility towards the environment. If your business faces a legal or statutory cleanup order, your Environmental insurance provider shall guide you on the expenses involved.

7. Business Liability

At times, when things go south, your business can face wrongful terminations, libel, controversial suits, etc. A business liability insurance is good to have as it takes care of these kinds of damages.

8. Acts of God

Natural disasters are uncertain and can damage your capital and restrict business operations. Thanks to Property insurance, you can get damages against these calamities covered!

9. Business Interruption

Operational hurdles are as fatal as any other blockages. It can hamper your business flow and cost you a loss in revenue. Ensure these damages with Business Interruption Insurance.

Risks Faced By Small and Medium Businesses

Small and medium-sized enterprises are those that have a few employees but not enough to be included in the category of micro business. These businesses are more likely to face more risks than large businesses and thus need more protection.

The big risks faced by small businesses are:

  • Loss of capital investment due to fire or theft
  • Sudden loss of income due to illness or disability
  • Business interruption, where the business is closed down for some time (e.g., due to a flood)
  • If a heavy vehicle is owned by a business, any breakdown could cost a fortune. 

Benefits of Commercial Insurance for Small and Medium Businesses

A commercial insurance plan is a form of insurance that protects a business from financial losses due to fire, accidents, theft, property damage and liability. It also provides coverage for legal defence costs in the event of lawsuits.

Benefits of a Commercial Insurance Plan:

  • Protects your assets from loss or damage due to fire or other disasters.
  • Provides medical benefits for employees and other risks associated with the business.
  • Covers legal fees in case you need a lawyer to defend yourself against claims filed by third parties (such as customers or vendors).
  • Protects your investment in machinery and equipment (machinery breakdown coverage).
  • Commercial vehicle Insurance can cover the losses for damage of heavy vehicles.

An experienced Insurance Expert can help you customise your Commercial liability insurance plan as per your business model, growth and needs.

Commercial Insurance by Shift Risk Insurance Brokers

ShiftRisk helps to customise and purchase reliable commercial insurance policies for small businesses and gives super easy and fast claim support. 

From our specialised Workers' Compensation coverage to our flexible and extensive Businessowners Policy and comprehensive EPLI coverage, we can help protect your small business from a variety of risks. For more information about our small business insurance, please contact us today.


How much does a Commercial Insurance Cost

Commercial insurance costs vary because every company is unique. Insurance companies use different factors to determine costs, which can include: 

  • Company type
  • Number of employees
  • Location
  • Payroll
  • Years in operation
  • Risk exposure

The factors an insurance company uses can depend on the type of commercial insurance. The best way to find out your company's commercial insurance cost is to get a quote.

If you're still wondering about the commercial insurance definition or have questions about what is covered under commercial insurance, we can help. ShiftRisk is an experienced insurance broking firm, and our specialists of 2 decades can help you get the coverage you need. Whether you need to create a policy for your business or are looking for help to file a claim, we've got your back.

Book your appointment with us now!
Written By:
ShiftRisk Team