Insurance 101: Commercial Insurance Coverage

As a business owner in search of coverage, you’ve likely come across the term “commercial insurance”. Find out what it means and who it covers.

If you’re not in the insurance industry, sometimes it can be difficult to understand some of the language commonly used to describe different types of coverage. For entrepreneurs and individuals alike, it can be challenging to hunt down the right insurance.

But if you’re running your own business, the hardest part of your day shouldn’t be finding the best insurance for your needs. Which is why we’ve put this article together to help you better understand a common term used to describe the business coverage you’re likely in search of: commercial insurance.

Below, you’ll find:

• A definition of commercial insurance

• Different types of commercial insurance coverage

• Common businesses covered by commercial insurance

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What Is Commercial Insurance?

Commercial insurance is a catch-all name for policies that are created for professionals and businesses. For example, you may have heard of commercial property insurance, which building owners or property management companies will purchase in order to protect their buildings.

Of course, if you’re an entrepreneur or small business owner, you’re probably looking for something more like commercial general liability insurance or professional liability insurance. See the below section for more information on these kinds of policies.

Types of Insurance for Small Businesses

As a provider of professional services or products, it’s imperative that you protect your business with coverage. But with all the kinds of insurance available out there, it can be tricky to know which policy – or policies – is right for you.

Below are some of the most common types of business insurance and what they cover.

Professional liability insurance

This type of coverage is also often referred to as errors and omissions insurance, or simply E&O. It helps protect you in the event that you are sued for allegations of professional negligence or making an error or omission that causes your client or customer to experience a financial loss.

Helping to pay for your legal fees, settlement expenses, or court awarded costs, Our small business insurance includes this type of coverage, with limits up to $5 million.

Commercial general liability insurance

This type of coverage is frequently referred to as just CGL. It covers businesses in the event of a third-party, like a customer, experiencing bodily injury on company property. For example, if someone were to slip, fall, and hurt themselves at your office, they could come after you to pay for their medical bills.

Commercial general liability insurance can also cover you if you were to accidentally cause property damage at a client’s home, workplace, or elsewhere. It can even include product liability insurance, which protects you in the event that your product causes harm or damage to a customer or their property.

If you’re looking to add this kind of coverage to your policy, we offer optional CGL with limits up to $5 million through our Small Business Insurance package.

Commercial auto insurance

Commercial auto insurance is the coverage you’ll need if you are looking to insure vehicles that you use for your business. For example, this can include delivery vans, transport trucks, or any vehicle that moves:

• Products

• Business materials

• Packages

• Tools and equipment

Non-owned auto insurance

If you’re using a vehicle that’s not owned, registered, or contracted in your name, non-owned auto insurance helps protect you in the event of damage. It can also provide coverage if you need your employees to drive their vehicles for business purposes, on occasion.

Our small business insurance package can include $1 million of non-owned auto coverage with the purchase of commercial general liability.

Business interruption insurance

This kind of coverage is usually part of a standard business insurance policy. It can also be purchased as additional coverage within a package policy.

As you may have guessed, this insurance will help you cover lost income if your regular business operations are interrupted due to a covered peril like fire or theft.

With our Small Business Insurance, you can opt in for this type of coverage with limits up to $100,000 if you also purchase commercial general liability.

Contents (COED) insurance

If you have an office or workplace, contents insurance helps protect the physical items that your company owns. For example, if your business premises were to experience a fire, flood, or theft, this kind of business insurance would cover things like:

• Computers and printers

• Furniture and decor

• Office tenant improvements

• Relocation costs

While every policy is unique, we offer contents coverage up to $250,000 on a replacement cost basis. This means that your policy will pay to repair or replace your damaged or destroyed business contents based on the amount you purchased them for, without considering depreciation value.

Data breach expense insurance

Sometimes referred to as privacy breach expense insurance, this type of coverage protects your business if your customer information is compromised or exposed.

With this insurance in place, you’ll be protected in the event of a lawsuit related to a breach. For example, it provides coverage of certain:

• Remediation expenses

• Business interruption loss

• Legal fees

• Defence expenses

Privacy breach expense is an optional kind of coverage, with limits up to $100,000, offered in our Small Business Insurance package.

Common Businesses Covered by Commercial Insurance

Commercial or business insurance helps mitigate risk for many different ventures. Below are some of the most common types of professional service providers or companies that have small business insurance.

Financial Services

• Accountants

• Bookkeepers

• Tax Preparers

Media and Marketing Professionals

• Copywriters

• Editors

• Graphic Designers

• Market Researchers

• Media Buyers

Consulting Professionals

• Brand Consultants

• Business Analysts

• Career Advisors

• Human Resources Consultants

• Leadership Consultants

• Life Coaches

• Management Trainers

• Marriage Counsellors

• Sales Coaches

Running a small business is hard. Finding the right insurance doesn’t have to be. Start your online application and you’ll receive your digital insurance quote instantly.

Need Insurance for Your Small Business?

APOLLO and Gallagher have partnered to provide insurance designed for businesses and business professionals. Get a free quote online in under five minutes and receive your policy instantly.

Get a Free Online Quote

4.7 rating