What Is Commercial Insurance?


Quick Answer

Commercial insurance protects organizations and businesses from risks and includes property, liability, auto and workers compensation policies. The two most general types of insurance for businesses and organizations are property and liability insurance.

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Full Answer

Property insurance is intended to protect furniture, equipment, buildings, satellite dishes, machinery and more from theft and fire. Liability insurance is useful in the event that the business owner is hit with a lawsuit from faulty products or services, or if someone other than an employee becomes injured on business property.

Workers compensation insurance takes care of medical costs resulting from employee injuries sustained while on the clock. Business owners who use automobiles often take out auto insurance policies to protect from the financial fallout resulting from theft, car accidents and other related risks. A business owner might also take out a special commercial insurance policy to cover the money in the cash register. There are also policies that can mitigate financial loss should a business ever have to close temporarily due to a fire or natural disaster.

Additional types of commercial insurance include equipment breakdown coverage in the event that business equipment were to suddenly break down or stop working and employee theft coverage to protect against employees who steal money from a business.

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