There are a many kinds of commercial insurance plans available to help protect the wide variety of business types that exist. The Small Business Administration (SBA) has identified several kinds of liability plans for commercial enterprises regardless their size that can protect against nearly any kind of risk.
A general plan will protect against the costs of fighting a legal battle caused by alleged accidents, injuries or possible negligence that might have resulted in a loss to a customer or other party. Any costs arising from bodily injury, medical treatment, property damage or accusations of libel, slander or defamation would be insured by a general policy.
Whenever marketing goods, a product liability policy will help protect manufacturers, wholesalers, distributors and retailers against potential lawsuits arising from their use due to any possible defects. The policies will pay the costs of any bodily injuries, property damage or other harm caused by defective products. Some enterprises are more in need high levels of protection for their products, such as automakers or manufacturers of construction equipment. But clothing stores and tailors, for example, would need far less coverage for their products, according to the SBA.
A commercial property plan insures the commercial enterprise's actual property, from the land and any buildings down to the smallest bit of equipment and inventory. There are two types of such coverage. One is called "all-risk," which, as the name implies, insures against an extensive range of potential perils as outlined in the policy. The other type is called "peril-specific" and provides coverage for those dangers outlined in the plan as chosen by the policyholder and agreed upon by the underwriter. Such dangers might include flood, fire or criminal acts and depend upon which ones a commercial enterprise has a greater likelihood of facing.
Professional liability insurance gives business owners the protection they need against potential financial responsibilities arising from daily activities, such as filling out and filing paperwork or acting in a fiduciary capacity. Also called an "errors and omissions" policy, such protection is required by law in most states for professions that have a great amount of fiduciary responsibility, such as insurance producers, accountants and stock brokers. If a client suffers a loss due to negligence, errors or malpractice, it would be covered.
Even home-based businesses can be protected with liability policies, which are not covered by typical homeowners protection. Fortunately, riders can be added to ensure homes are not lost if a client sues for some reason and wins a large judgment that otherwise might force the sale of the house.
No matter which kind of commercial enterprise in which someone might be engaged, there is a suitable level of protection available to prevent tragic losses.