Commercial insurance is designed to protect businesses from the risk of financial disaster in case something unexpectedly goes wrong. However, too many business owners are unclear about the types of insurance they need. As an independent insurance agent, we can help business owners work out what their insurance needs are and recommend suitable policies to give the business adequate protection.

Types of Commercial Insurance

The first step to getting adequate commercial insurance is to find out what types of insurance coverage are legally required. For example, businesses that employ staff need to carry worker’s compensation insurance, which pays out to cover an employee’s wages and medical benefits in case of a workplace injury. Certain states, including California, Hawaii, New Jersey, New York and Rhode Island, also require employers to purchase disability insurance to cover employees who develop injuries or illnesses not related to work.

Businesses also need liability insurance. There are various types of liability insurance that can be purchased by business owners. The most basic type, general liability insurance, provides coverage for legal issues following work-related accidents or accusations of negligence on the part of the business. General liability insurance provides coverage for the costs of defending lawsuits and paying compensation.

Businesses that produce or distribute products can be held responsible for any safety flaws with the products. Product liability insurance protects businesses against financial losses if they need to pay out compensation for faulty products. The amount of product liability insurance that is needed depends on the nature of the products that are sold.

Professional liability insurance is recommended for businesses that provide services. This type of policy protects businesses from financial losses resulting from claims of negligence or malpractice. Some states require certain types of service industries to carry this type of insurance. An independent insurance agent can give advice about state requirements.

Business owners may also want to consider insuring their business premises using a commercial property insurance policy. The level of coverage varies widely, with some policies only covering property damage resulting from specific events, such as a break-in or fire, while others cover a wider range of incidents. An independent insurance agent can give advice about which type of commercial property insurance is the most appropriate for a particular business.

Purchasing Commercial Insurance

When considering which types of commercial insurance to purchase and deciding what level of coverage is needed, business owners need to take into account the risks that their organization is likely to face. Business owners should consider how they would meet the costs of legal issues, property damage or other events that can be insured against. If the costs could not be met in such an event, then purchasing commercial insurance is important to protect the future of the business.

Obtaining the correct insurance for your company can be a complicated - and often confusing - process.  What coverages do state laws require?  What coverages (and limits) are you obligated to carry to comply with that contract you just signed?  McFarlin Insurance Agency has been writing insurance for companies since the doors were opened back in 1939.  While the insurance products and exposures to loss continue to evolve, our commitment to our clients and their needs has not.  

We realize every client has different needs and different exposures to loss. That’s why the staff at McFarlin Insurance takes the time to discuss, review, and make sure you understand what options are available for your business. For more information about Maryland commercial insurance requirements and options, contact us today at 410-312-7800. We are happy to give advice to business owners to help them ensure that their business has adequate insurance coverage.