Commercial Insurance 101: What It Covers and Why You Need It

| 2023.07.12
Commercial insurance 101: What it covers and why you need it

Most of us are familiar with various common types of insurance, such as life, home, and car coverage. However, are you also familiar with commercial insurance?

If you run a business, then you need commercial insurance. Commercial insurance is similar to home and auto insurance in that it provides financial protection for a significant asset—in this case, your business.

In this article, we will explain the following to help you learn more about commercial insurance:

  • What the purpose of commercial insurance is.
  • The most common types of commercial insurance.
  • The benefits of obtaining commercial insurance.

At MMI Insurance, we can create a customized commercial insurance package to ensure you have all the financial protection you need for your business!

What is the purpose of commercial insurance?

The primary purpose of commercial insurance is to provide your business with a financial cushion that will enable you to keep your company going when an unfortunate event occurs. These events can take a wide variety of forms that could include the premises of your business being damaged by fire or theft.

By purchasing commercial insurance, you are being proactive about risk management and “passing” the risk on to an insurance company in the form of the premium you pay. Commercial insurance is not required by law (unless it is for a commercial vehicle), but it will help protect both you and your clients from a huge financial hit in the case of an adverse event.

What are the most common types of commercial insurance?

These are some of the more common types of commercial insurance:

  • Commercial general liability: This insurance is vital for any business to have. It covers various issues, from third-party injuries and property damage caused by your business or employees to lawsuits related to libel or slander.
  • Professional liability (also referred to as errors and omissions): This insurance is for lawsuits claiming that a client suffered a financial loss due to negligence or misconduct by your business. Doctors and lawyers are the most common professions that buy this insurance.
  • Commercial property: This is similar to home insurance; it covers you for losses or damages to your property and contents.
  • Commercial vehicle: This is the only type of commercial insurance required by law, and it covers vehicles used by your business, such as company cars or vans.
  • Cyber liability: This type of commercial insurance provides financial protection against a wide variety of fallouts from cyber incidents, including crisis management costs, losses due to business interruption, and lawsuits associated with network security breaches.
  • Directors’ and officers’ liability: This insurance protects directors or other senior management against financial losses due to business-related lawsuits.

What are the benefits of obtaining commercial insurance?

The most apparent benefit to obtaining commercial insurance is the financial protection it provides you with! Whether you’re recovering from a break-in or a natural disaster or are the subject of a lawsuit, commercial insurance provides you with the financial cushion you need to keep your business running.

In addition, commercial insurance boosts the trustworthiness of your company. Anyone working with your company will feel more confident knowing that you have the right commercial insurance, whether they’re a potential client, stakeholder, or creditor.

How can MMI Insurance help me with commercial insurance?

At MMI Insurance, we can help you find the right commercial insurance products and services to provide your business with the financial protection it needs. We’ll create a customized insurance package to fit your needs.

We aim to provide you the coverage you need while keeping your premium prices low. We work with a wide variety of different types of businesses, including:

  • Contractors, such as builders, plumbers, and electricians.
  • Retail businesses, both online stores and companies with physical premises.
  • Offices, such as doctor’s offices, lawyer’s offices, and accounting offices.
  • Non-profits. These include food banks, disaster relief, community care organizations, religious associations or service organizations.

We’ll take the time to determine the right commercial insurance coverage for you. We will meet with you to learn more about your business and its unique risks and then explain how different types of commercial insurance can provide your company with the protection it needs.

At MMI Insurance, we’ll find you the commercial insurance coverage you need at a price that works for you.

Commercial Insurance: A Must-Have for Financial Protection and Peace of Mind

Establishing and running a business is an enormous amount of work. Unfortunately, all your hard work can be destroyed if you don’t have the proper financial protection in place.

Commercial insurance provides your company with the financial protection you need to have peace of mind, whether you’ve had a data breach due to hackers or have been the victim of a crime that damaged your property.

At MMI Insurance, we’ll create a customized commercial insurance package with individualized insurance coverage that suits your business. We can ensure that you have the right coverage in place, from insurance that all companies require, such as commercial general liability insurance, to more specific insurance that protects directors and senior management.

Contact Us to Learn More

Don’t leave your business without the financial protection it needs! To learn more about what type of commercial insurance you need, call MMI Insurance at 866-222-6996 or contact us online.

Coverage is subject to policy wording, terms, conditions, and deductibles. Protection is limited to the perils, coverage, exclusions, and limits shown on the policy.