While shopping for personal insurance becomes increasing consumer-driven, the challenges of building an insurance package around a business illustrate where agents and brokers who specialize in commercial insurance are essential. Every business is different, and so its risks and loss exposures are unique. Insurance professionals help business owners understand both the regulatory and fiscal coverages and mitigation steps necessary to safeguard operations. There are six common types of business insurance owners should consider right off the bat, according to the U.S. Small Business Administration (SBA):
  • General liability insurance;
  • Product liability insurance;
  • Professional liability insurance;
  • Commercial property insurance;
  • Home-based business insurance; and
  • Business owner's insurance.
Additional coverages may be necessary if, for instance, a business requires staff, equipment, multiple locations, vehicles, or the transportation of goods — just to name a few of the distinctions that can impact insurance concerns. Here are four basic steps recommended by the SBA to manage business insurance:
  1. Assess the risks. Think about what kind of accidents, natural disasters, or lawsuits could damage the business. Is the business located in a commercial area that is at risk from seasonal events? Commercial property insurance will help protect against loss.
  2. Work with a reputable, licensed agent/broker. Commercial insurance professionals help find policies that match the business' needs.
  3. Shop around. Prices and benefits can vary significantly. Compare rates, terms, and benefits for insurance offers.
  4. Re-assess every year. As the business grows, so do its liabilities. Whenever a business owner purchases or replaces equipment or expands operations, it's time for a call to their insurance advisor for a discussion about any changes to the business and how they alter insurance needs.
When insurance coverage confusion arises in the face of a claim, agents and brokers can turn to FC&S Expert Coverage Interpretation for answers to complex policy questions. The slideshow above illustrates a selection of business-insurance questions recently submitted and answered by FC&S Editors. Related:  
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