Commercial Insurance 101: A Beginner’s Guide to Business Protection
Starting a business comes with a lot of moving parts—and understanding commercial insurance is one of the most important. This basic primer helps entrepreneurs and startups make informed decisions about their coverage from day one.
What Is Commercial Insurance?
Commercial insurance is a broad category of policies designed to protect businesses from financial loss due to property damage, lawsuits, employee injuries, and more. It’s essential for risk management and often required by law or contract.
Key Types of Commercial Insurance Policies
- General Liability Insurance
- Covers third-party injury, property damage, and advertising-related claims.
- Commercial Property Insurance
- Protects physical assets such as buildings, inventory, and equipment.
- Workers’ Compensation Insurance
- Required in most states; covers employee medical costs and lost wages after workplace injuries.
- Professional Liability (E&O) Insurance
- Covers mistakes or negligence in professional services or advice.
- Cyber Liability Insurance
- Helps recover from data breaches, cyberattacks, and online threats.
- Business Owner’s Policy (BOP)
- A bundled package combining property and general liability insurance for small businesses.
Understanding the Claims Process
- Notify your insurer immediately after an incident.
- Document damages or events with photos and reports.
- Work with your adjuster to evaluate losses and process payment.
- Keep detailed records of all correspondence and expenses.
Agents vs. Brokers: What’s the Difference?
- Insurance Agents work for specific insurance companies and can only offer their products.
- Insurance Brokers are independent and can shop multiple carriers on your behalf.
Start Learning About Insurance
TriPack simplifies the insurance process for new business owners by matching them with the right coverage for their goals, budget, and industry.