Business insurance, also known as commercial insurance, protects your company from financial losses caused by unexpected events such as property damage, worker injury, data breaches, and more. Commercial insurance policies are different from personal insurance policies because they protect a business, not an individual. Whether you are just starting out or have been in operation for some time, having the right insurance coverage can help you sustain your business for years to come.
Does my business need insurance?
Commercial insurance is not legally required for all businesses. However, certain types of coverage may be mandatory depending on specific industry and state regulations. In South Carolina, businesses with four or more employees are required to carry workers’ compensation insurance to cover medical bills for work-related injuries. In addition, all business-owned vehicles in South Carolina must be covered by commercial auto insurance. Regardless of legal requirements, business owners should strongly consider investing in commercial insurance to minimize personal liability in the event of a loss.
For example, if you run a home-based business, your homeowners insurance policy alone may not offer adequate protection. Business assets such as equipment or product inventory may not be covered in an unexpected loss, and if someone injures themselves during a business-related visit to your home, you could be liable for their medical bills. Without the right coverage in place, you may have to pay out of pocket for these types of claims, which is not sustainable for many business owners.
What are my coverage options?
Every business has different needs and faces unique risks, which is why there are several types of commercial insurance policies to consider.
- Commercial general liability insurance can help cover the cost of any accidental damages as a result of the business’ operations. If a visitor is injured at your business or one of your employees damages someone else’s property, general liability coverage may help pay for the injured party’s medical expenses or property repairs. It may also help pay for legal costs if you are taken to court over an accident that occurred at your business.
- Commercial property insurance protects your business’ physical location and other business property like tools, equipment, inventory, and furniture. In general, commercial property insurance does not protect against damage from floods and earthquakes. If your area is at risk for these events, you may want to consider adding on a separate policy.
- Commercial auto insurance protects you and your employees on the road while using company-owned vehicles. It can help cover the cost of property damage and medical expenses following an accident.
- Cyber liability insurance can protect your business from risks associated with a data breach if confidential information gets lost or stolen. Cyber insurance can help cover costs to notify impacted individuals and even offer credit monitoring services.
How do I know what type of coverage I need?
The type of commercial insurance you need can depend on several factors including your business’s size, location, and industry. Working with an insurance advisor can help you determine your exposure to risk and identify policies that meet the unique needs of your business. Whether you are starting a new venture or simply want to reevaluate your options, rely on South Carolina Federal Insurance Solutions for customized commercial insurance coverage.
