Commercial insurance can be complicated because different businesses face different risks. Here are answers to 15 common business insurance questions.
1. What Types of Insurance Does a Small Business Need?
Needs vary by operation. Common coverages include general liability, property, business income, workers’ compensation, commercial auto, professional liability, cyber, employment practices, umbrella, inland marine, and crime.
2. What Is General Liability Insurance?
It generally helps protect a business against certain covered claims involving bodily injury, property damage, and personal or advertising injury.
3. What Is a Business Owners Policy?
A business owner’s policy (BOP) combines certain coverages—commonly property, general liability, and business income—into one policy. Not every business qualifies.
4. What Is Commercial Property Insurance?
It can protect covered buildings, business personal property, inventory, equipment, furniture, and other insured property against covered causes of loss.
5. What Is Business Income Coverage?
It may help replace certain lost income and continuing expenses when a covered property loss causes a qualifying interruption in operations.
6. Do I Need Workers’ Compensation?
Workers’ compensation requirements vary by state and business circumstances. Coverage generally provides benefits for eligible work-related employee injuries or illnesses.
7. Personal vs. Commercial Auto Insurance?
A personal auto policy is designed for personal driving exposures; a commercial auto policy addresses vehicles and driving exposures associated with business operations.
8. What Is Hired and Non-Owned Auto Coverage?
It can address certain liability exposures when a business uses vehicles it does not own, such as employee personal vehicles used for business or rented vehicles.
9. What Is Professional Liability Insurance?
It can help protect certain businesses against covered claims alleging errors, omissions, negligence, or failure in professional services.
10. Does My Business Need Cyber Insurance?
Businesses that use technology, store sensitive information, accept electronic payments, or depend on computer systems may have cyber exposures worth reviewing.
11. What Is Commercial Umbrella Insurance?
It can provide additional liability protection above certain underlying commercial liability policies, subject to its terms and limits.
12. What Is a Certificate of Insurance?
A COI provides evidence of certain insurance coverage in effect when issued. It generally does not change the policy or automatically provide additional coverage.
13. What Does Additional Insured Mean?
An additional insured receives certain protection under another party’s policy when the policy or endorsement grants that status. It is not the same as merely being a certificate holder.
14. Why Are Sales and Payroll Important?
They can be rating and exposure measures. Some policies are audited, and differences between estimated and actual exposures can change premium.
15. How Often Should I Review Business Insurance?
Review it at least annually and whenever you hire employees, add locations or vehicles, buy equipment, change services, sign major contracts, expand into another state, or materially change operations.
Have More Questions?
Call Oberryman Insurance Agency at 703-986-0468 to discuss your commercial insurance needs, request a business insurance review, or obtain a quote.
Insurance coverage, eligibility, rates, limits, deductibles, exclusions, endorsements, underwriting, and availability vary by insurance company, policy, state, and individual circumstances. This article is provided for general informational purposes and does not modify or replace the terms of an insurance policy. This information is not legal advice.
