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Commercial small business insurance is a necessity if you want to protect your business from any form of financial loss. There are several types of small business insurance available and knowing them will help you determine what insurance coverage your business needs to enjoy the best protection against loss.

Types of Commercial Small Business Insurance

1. Business Owners Insurance Policy

This type of commercial business insurance is similar to the homeowners’ insurance policy. It is most beneficial to owners of small and medium-sized businesses. The policy covers all the basic protection small to medium-sized business owners need at a premium that is more affordable than getting individual insurance coverage.

The business owner will enjoy from the simplified process of getting all the basic insurance coverage they need with a single premium that typically costs less than getting all the same insurance protection separately. The policy includes the following protection: property and liability coverage, and other basic insurance such as business interruption, crime, and rented/borrowed vehicle protection.

2. Commercial Business Property Insurance

Commercial property insurance is a type of commercial business insurance that covers loss of property due to fire, smoke, water, or weather-related damages as well as from other natural disasters and theft. This is an insurance usually carried by most business regardless of nature and size.

Regardless whether you own the business property or just rent/lease the property, you have the option to get this type of insurance protection. Coverage as well as the terms and condition may vary from one insurance provider to another.

3. Business Interruption Insurance

This type of commercial business insurance protects you from loss of income. For instance, when damages or loss of property results to interruption of the business, the insurance takes financial responsibility from loss of income of the owners because of the interruption.

Never run your business without the necessary commercial business insurance protection. This is one of the most important business advice you will ever receive. It can be extremely difficult to take full responsibility and recover from losses when you do not have the protection your business needs. Regardless of how careful you are in running your business, there are just certain things that are beyond your control.

Several types of commercial business insurance policies are available. You have the option to get them individually based on your needs, or you may also choose to get an umbrella policy that combines all the basic protection you need in one simplified insurance policy. This type of policy normally cost less than all the other policies you can carry individually.

Here are the things that the umbrella commercial business insurance policy or usually referred to as the business owners’ policy (BOP) will protect you:

• The policy will provide insurance protection for the building your business owns against financial loss due to fire and other natural calamities, as well as man-made damages such as theft and vandalism;

• It will also provide protection for building contents, especially beneficial to business owners who are just renting or leasing the property. However, under an umbrella insurance coverage, the protection does not cover for vehicle insurance.

• An umbrella commercial business insurance policy covers basic liability insurance such as protection for customers or employees who get hurt while in the premises of the business, or while performing their duties and responsibilities. It may also cover for any claims relative to the use of products or availing the services offered by the business.

• Additional coverage for business liability is included depending on the insurance provider and the type of umbrella insurance policy. There are those that cover for malpractices or insurance for rented/borrowed vehicles.