6 Different Types of Commercial Insurance

| 2023.10.17
6 different types of commercial insurance

You’ve likely heard of commercial insurance if you run a business. However, do you know how many different types of commercial insurance there are? In this article, we’ll explain six common types of commercial insurance:

  • General liability insurance
  • Commercial property insurance
  • Professional liability insurance
  • Commercial auto insurance
  • Cyber liability insurance
  • Crime insurance

Having the right commercial insurance in place can make all the difference when it comes to the financial success of your business. With commercial insurance from MMI Insurance, you’ll be able to resume operations quicker, no matter what happens.

1. General liability insurance

The purpose of general liability insurance is to protect you from insurance claims related to your business. Here are two examples of situations where general liability insurance will provide you with financial protection:

  • Someone is injured on your property. For example, people have tracked snow into your business, leaving puddles on the floor. A customer then slips on the water, breaks their leg, and sues you.
  • You or someone from your business is responsible for damaging a third party’s property. You can be held responsible for the damage and sued.

General liability insurance will cover the costs associated with the lawsuits in both situations.

2. Commercial property insurance

Another type of commercial insurance that you should have is property insurance. Commercial property insurance works similarly to home insurance in protecting your assets from issues, such as fire or theft.

However, commercial property coverage goes beyond just providing financial compensation for stolen or damaged office furniture or equipment. It can also compensate for income lost while waiting for repairs or equipment to be replaced. 

3. Professional liability insurance

The purpose of this type of commercial insurance is to provide you with financial protection if someone is injured or their property is damaged due to the professional services you provide. These are two examples of when professional liability insurance would be vital:

  • You are an engineer providing professional services for construction and the project fails due to your professional expertise
  • You are a financial advisor who provides advice to your clients on how to invest. A client could sue you if they feel you provided misleading advice.

Many professionals, including graphic designers, accountants, and photographers, can benefit from buying professional liability insurance.

4. Commercial auto insurance

Another type of insurance you may need to purchase is commercial auto insurance. If you run a company that never involves using a vehicle for business purposes (for example, a copywriting service that does everything online), then you likely don’t need to purchase commercial auto insurance.

If, however, any of the following circumstances are true, then you should look into purchasing commercial auto insurance:

  • Your vehicle is registered in your business’ name.
  • You use your vehicle to make deliveries or travel between job sites.
  • You drive for a ridesharing service, such as Lyft.

Commercial auto insurance can cover various expenses associated with an accident, including damages to the vehicle, as well as lost wages and medical expenses.

5. Cyber liability insurance

It seems like every day, there’s another story in the news about people’s private information being leaked. Huge corporations such as banks, investment firms, and government agencies have been victims of cybercrimes.

This is why cyber liability insurance is so important! Regardless of the size of your business, you and your clients could be victims of a data breach. With cyber liability insurance in place, you’ll have the funds to:

  • Cover any lawsuits associated with the data breach.
  • Pay for public relations to help repair your reputation.
  • Pay for the cost of credit monitoring for your clients.

6. Crime Insurance

Your business can be targeted by criminals at any time. That’s why it is paramount to invest in a solid crime insurance policy.

Crime insurance is designed to safeguard businesses when money, property, stocks or securities are stolen from outside or within the organization. Although it can’t prevent crimes from happening altogether, it can help to minimize the negative financial consequences that come with them.

When you have crime insurance, you can rest assured, knowing it gives foolproof coverage in the following areas:

  • Provides protection for employers in the event that an employee steals from them.  
  • Offers coverage for theft of money or securities stolen from your premises or while you are on your way to make a deposit. 
  • Covers a loss when purchases were made with counterfeit currency.  

How can MMI Insurance help me if I need to purchase commercial insurance?

At MMI Insurance, we have over 60 years of experience offering commercial insurance to a variety of clients, including contractors, retail store owners, medical professionals, and non-profit organizations.

Our goal is to provide you with customized commercial insurance at an affordable price. When you contact our experienced insurance agents, they will:

  1. Ask you questions about your business to determine what kind of commercial insurance coverage you need.
  2. Explain how the different types of commercial insurance we offer work and which ones we recommend for your business.
  3. Put together a personalized insurance package for you and let you know what your premiums are.

You’ve worked hard to build your business, and you deserve to have it financially protected. The right commercial insurance gives you peace of mind and ensures that you will have the financial resources you need, no matter what happens to your business.

Commercial Insurance: A Must-Have for Any Business 

Running a business isn’t easy. You have to take care of everything from ensuring you have the supplies needed to keep your business going to hiring the right employees to succeed.

With all these tasks to consider, getting commercial insurance may not seem like a priority. However, without commercial insurance, all your hard work could be wiped out by anything from a fire to a cyber attack! While you can’t protect your business from every risk, you can ensure that you have financial protection in place with the right commercial insurance.

Contact Us to Learn More About Commercial Insurance

Whether you’re looking to switch to a new insurance company or are just starting to launch your business, MMI Insurance is here to help. We’ll answer any questions you have about commercial insurance and ensure you have the coverage you need.

To learn more about how we can assist you with commercial insurance, you can call us at 866-222-6966 or contact us here. Our experts are more than happy to help!