What kinds of commercial building insurance should I buy?
UPDATED: February 20, 2013
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The three most important insurance policies you can purchase for a commercial property are property, liability, and workers’ compensation insurance.
In general, a property insurance policy will cover damage to a commercial property caused by certain events, such as fire. You can also add extra coverage to a property insurance policy to ensure that specific items in the building are covered, including glass, machinery, and other equipment.
A liability insurance policy typically covers injuries to others that occur on the property. Like property insurance, you can add other coverage to a liability policy, such as errors and omissions insurance. This type of insurance provides coverage for accidental mistakes that cause injuries. Liability insurance is particularly important if customers frequent your commercial property.
While liability insurance will cover injuries to customers and other visitors to a commercial property, workers’ compensation insurance covers injuries to workers that occur on the job. In some instances, having a workers’ compensation policy will prohibit a worker from suing the employer for negligence. Many states require businesses to carry workers’ compensation insurance, so check with your attorney to make sure you have the proper insurance required by law.
When looking for insurance for your commercial building, be sure to shop around and seek the advice of your attorney as well as a qualified insurance agent to determine the exact insurance your property needs.