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Commercial/Business Insurance is a broad name that is given to any type of insurance which protects the business in different aspects.

It can be divided into 9 categories according to the type of business and protection needed.

These are:

1. Property Insurance – It insures the business against damage or loss to the location and the contents.

   It can cover the assets of others which are in the possession of business. This type of policy can also be purchased for a particular risk. For instance, fire insurance covers only against fire losses. Tornado is not fire, so it would not cover any loss due to tornado.

   The insured location may be rented, leased or owned.

1. Liability Insurance – Such type of insurance insures against any liability lawfully imposed on the company due to the negligence of the company itself or its workers.

   It is again divided into 3 different types – general liability, professional liability and product liability insurance .

1. Commercial auto –

   The policy purchased for personal vehicles do not cover business vehicles. For protecting the vehicles used by the firm, one needs a commercial auto cover.

   It secures against damage to automobile and damage caused by that auto to other vehicle.

1. Workers compensation – Every business is required to insure the employees against on-job harms. All states have different rules. However, most of the states use workers compensation policies.

   It is a system in which the workers cannot sue their employers for on-job injuries.

1. Business Interruption policy - Business interruption insurance policy protects the business against any damage or loss to the profit and cash flow, caused by the business itself. Business is not able to run due to such an interruption. For instance, a crucial part of machinery may be struck by lightning.

1. Life and disability policy – This type of insurance protects a company or firm against the disability or death of main players of the business. For example – there is one partner who holds a life insurance cover, naming partnership as beneficiary.

   If that particular partner dies, the proceeds of his or her cover can be easily be used by the company for its dealings.

1. Health insurance – Health insurance should not be taken wrongly as a personal policy.

   It is also a type of commercial insurance which covers the health of workers working in the company.

   It provides health cover advantages to the employees and employer.

These days, when it is an era of technology and all the businesses operate through computers and internet, one new type of insurance has emerged.

It protects the business against cyber attacks.

These attacks can arise because of employees, rogue operators, independent contractors or any other person who has access to the data of the company.

About: – Businesses keep the financial information of their patrons in online databases. Customers may take security for granted and can permit their credit card numbers to reach in wrong hands. So, there is a need to have commercial insurance and network security policy these days to have protection against these issues.

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