Frequently Asked Questions on Commercial Insurance
How Does Commercial Insurance Work?
Commercial Lines Insurance helps keep the economy running smoothly by protecting
businesses from potential losses they couldn't afford to cover on their own, which allows
businesses to operate when it might otherwise be too risky to do so.
Insurance that protects businesses against losses as a result of such things as damage to
property and injuries to employees.
What Is Coverage Like for this Type of Business Insurance?
Commercial Lines Insurance includes a variety of products:
- Commercial Auto Insurance
- Workers Compensation Insurance
- Commercial Property Insurance
- Commercial General Liability Insurance
- and more...
Commercial lines protect businesses against potentially devastating financial losses
caused by accidents, lawsuits, natural disasters and other adverse events. Coverage
available and premium costs vary by business type, size, and location.
Why Do the Commercials Line Policies Vary?
While all commercial lines share some similarities, each policy will be tailored for the type of
business being covered and the client's unique needs.
Commercial lines aren't just for large corporations. Even a small, home-based business
might need one or more commercial lines because homeowners insurance provides
limited or no insurance for business activities.
For example, a home business might need commercial auto insurance for a
company-owned delivery vehicle, workers compensation insurance for the employee who
drives the vehicle, property insurance to cover business goods stolen from the home or
vehicle, and liability insurance to protect against claims by any client who claims they were
harmed by the business's product.
Protect Your Business From Common Liabilities
Commercial General Liability Insurance
Your business faces liabilities every day. The only way to protect your assets is to carry
adequate business liability insurance. A Commercial General Liability (CGL) insurance
policy is the first line of defense against many common claims.
General Liability insurance covers claims of bodily injury or other physical injury or property
damage. It is frequently offered in a package with Property insurance to protect your
business against incidents that may occur on your premises or at other covered locations
where you normally conduct business. Commercial General Liability enables your business
to continue operations while it faces real or fraudulent claims of certain types of negligence
Commercial General Liability - The Most Basic Form of Business Insurance If you have only
one form of business insurance, it is most likely Commercial General Liability. CGL policies
cover claims in four basic categories of business liability:
- Bodily Injury
- Property Damage
- Personal Injury (including slander or libel)
- Advertising Injury
In addition to covering the claims listed above, Commercial General Liability policies also
cover the cost to defend or settle claims - even if the claims are fraudulent. Commercial
General Liability only protects against some business liabilities.
Business liability Insurance Keeps You In Business
Business Liability insurance protects your business against financial loss resulting from
claims of injury or damage caused to others by you or your employees. (Some coverage
may not be available on all policies or in all states.)
- Automatic Additional Insured. Coverage is automatically provided when required in a written contract, agreement or permit.
- Personal and Advertising Injury. Covers you for certain offenses you or your
employees commit in the course of your business, such as libel, slander,
disparagement, or copyright infringement in your advertisements.
- Employment Practices Liability. Covers claims, including legal defense costs, for
certain employment-related lawsuits brought against you by your employees or job
- Defense Costs. Pays legal expenses for certain liability claims brought against your business regardless of who's at fault.
- Medical Expenses. Pays the applicable medical costs if someone is injured and needs medical treatment due to an accident on your premises.
- Premises and Operations Liability. Provides coverage for bodily injury and property damage sustained by others at your premises or as a result of your business' operations.
- Tenant's Liability. Protects your business against claims of damage due to fire or other covered losses caused by you to premises that you rent.
Note: This summary outlines in general terms the coverages afforded under some policies.
Examine the policy carefully for any exclusions, limitations, or any other terms or conditions
that may specifically affect coverage. The terms and conditions of the policy prevail.
Get A Commercial Insurance Quote from Koch Insurance
To see how our commercial insurance policies can help your business be secure, please
contact us for a free quote. Koch Insurance agencies are located throughout South Dakota,
with office locations in Tea, Tyndall, Tabor, Springfield, and Yankton. We'll provide
you with all the information you need to make an informed decision on keeping your