Did you know that almost a third of the $5 billion insurance in payouts for Superstorm Sandy was for business interruption insurance? Coverage for loss of income and extra expenses incurred from interruptions such as disasters.

This may make it seem like business interruption insurance is one of the most critical options you can invest in. It is, but other types of commercial insurance may be just as valuable for day-to-day operations.

So how can you decide which insurance policies your business needs? How can you determine which ones are surplus to requirement?

To help you answer those questions, we’ve created this commercial insurance guide. Read on for your business insurance options and how you can decide what you need.

Liability Insurance

Liability insurance protects your company from the losses of lawsuits. As this is a broad statement, liability insurance can be divided into several areas, such as:

• Business Liability
• Professional Liability
• Personal Liability

Each of these covers different issues. For example, business liability insurance protects you from losses from an incident involving the work you are doing; your premises and your products.

Business Liability Insurance is always advisable, but if you’re unsure which you should invest in, our team will happily talk you through your business liability options.

Commercial Property Insurance

Property insurance protects your business and its contents from damage.

As with liability, this is very broad. To cover your business for every possible eventuality may be expensive and unnecessary. For example, if your business isn’t situated in an area prone to earthquakes, this coverage may not be necessary.

Many businesses thus choose property insurance that only covers more likely scenarios. Crime insurance is a popular option for those in more dangerous areas. But one we’d recommend to nearly everyone is flood insurance.

Commercial Flood Insurance

While some areas are more likely to flood than others, it’s a disaster no place is immune to. A sudden unexpected weather pattern can cause even the driest areas to flood.

Considering how easily they happen, floods can cause an extraordinary amount of damage. In fact, in some recent years, the average flood claim sat at a staggering $75,000 in damage. So no matter where your business is, invest in flood insurance so you can recover from any damage.

Workers’ Compensation Insurance

Workers’ compensation insurance protects both you and your employees. It’s so valuable that it’s even mandatory in some areas.

The policies usually cover the cost of illness or injury experienced at work. In extreme circumstances, it may include covering a funeral or sending funds to the deceased’s family. Most also cover the cost of any lawsuits of this nature brought against the business.

Cyber Liability Insurance

Cyber liability insurance protects you from the fallout of cyber-attacks. These may be large-scale hacks that hold your data ransom. Or an employee could accidentally click on a virus that compromises your network.

For example, T-Mobile is dealing with its second data breach in two years. This results in lengthy, expensive litigation, which cyber liability insurance can cover.

Cyber insurance is a necessity for many modern businesses. It ensures your business can financially manage any cyber issues ahead.

Industry-Specific Commercial Insurance

The previous types of insurance coverage are available to almost all businesses. They’re designed to protect them from losses out of their control. But depending on your industry, you might have more specific insurance options.

The following are examples of industry-specific insurance options. They protect businesses from losses they’re more likely to experience without adding endless policies.

IT and Startup Insurance

IT and startup insurance policies cover the basics, like a business liability. But policies specifically focus on errors and omissions, insurance, and cyber liability. This type of insurance is essential when providing software to consumers.

Janitorial Insurance

Janitorial insurance is essential because these businesses work on clients’ property. You cannot guarantee the safety of that worksite. .

If something gets damaged during cleaning work, these policies protect you where others won’t. And if one of your workers makes the poor decision to steal from a client, this policy still protects you.

Manufacturers Insurance

Manufacturers have a complex operation to insure. Therefore, manufacturer’s insurance may include several facets, such as:

• Product Liability
• Workers’ Compensation
• Commercial Auto Insurance
• Business Interruption Insurance

Rather than spending on several policies, this insurance covers everything you need in one go.

Restaurant Insurance

Each restaurant is different so it will require a different policy.

For example, a restaurant that offers delivery is more likely to want to add commercial auto insurance to its policy. But not all restaurants need that coverage. To address this, we offer various types of restaurant insurance, depending on your needs.

Wholesalers and Distributors Insurance

Wholesalers and distributors have unique insurance needs. Their risks lie heavily in transportation and damaged goods. And in the case of an accident, workers’ compensation is also worth having.

Wholesalers and distributors insurance focuses on vehicle and business interruption insurance. This ensures situations out of their control don’t derail their operation.

Franchise Owners Insurance

Franchises are a complex business model that can be difficult to insure conventionally. For example, should the franchisee or franchisor pay when something goes wrong? Franchise owner’s insurance specifically covers these more complex situations.

What Types of Commercial Insurance Do You Need?

The various types of commercial insurance aim to cover all potential business losses. But that doesn’t mean you need all of them!

We would always recommend industry-specific insurance for your business. But how can you decide which other policies you should consider?

The best way is to talk to the specialists. We’ve helped countless businesses find coverage specific to their needs without investing in every type of policy.

If you’d like to find coverage tailored to your business, request a quote today. We’ll help you find the perfect insurance plans to keep you up and running!