Beyond Banking: Understanding Commercial Insurance for Your Business

Successful small business leaders approach new ventures with an independent, can-do attitude, but smart entrepreneurs turn to outside experts for help when it comes to commercial insurance.

If you have customers, suppliers, and/or employees, then you have potential liabilities that you need to cover to protect your business. It’s important to understand some of the basics when you meet with an insurance agent or broker.

Understand the Types of Business Insurance

Business insurance comes in many different forms, but all of them aim to either protect your business against damages or losses and/or to cover financial liabilities that your business may have to pay to customers, employees, or others.

Some of the most common include:

  • Liability Insurance: General, product, professional, cyber, employment practices, umbrella, and other liability protection.
  • Property Insurance: Commercial, auto, fleet, and other types of property coverage.
  • Employment-related Insurance: Worker’s compensation, key person, business income and other such plans.

Liability insurance generally covers the business in the event of lawsuits or claims made by employees, customers, suppliers, and others. Property insurance reimburses the business for damages caused by vandalism, theft, accidents, and other unforeseen events. Employment insurance is like liability insurance but typically focuses on issues specific to employment law, employee accidents or harm, and payroll situations.

Determine What Your Business Needs

There are some types of insurance that almost all businesses need and depending on your location, you may be legally required to carry certain types of policies.

Beyond the required policies, your insurance needs will depend heavily on the specifics of your particular business venture. While an insurance agent or broker can help you find the right protection, they will need your help in figuring out what policies are most relevant to your specific needs. If you’re unsure, you should always consult with your business attorney to get expert perspectives on business liabilities.

Think about how you conduct your business and ask yourself questions like:

  • Do I have employees – part-time, full-time, or contract?
  • Do I have real estate such as office space or stores? Do I have a fleet of vehicles?
  • Are there risks related to my business that are specific to my industry?

Once you have done a little homework, you are ready to contact an agent or broker.

Work with an Expert

An insurance expert can help you understand what types of insurance you are legally obligated to carry as well as what you want to consider beyond basic requirements. Often you can save money by bundling several policies together. We are grateful to serve our customers alongside many excellent commercial insurance agents in Mississippi and Alabama.

As your business grows and changes, so will your coverage needs. Business owners need to regularly review their policies to make sure they have enough coverage yet aren’t paying for protection that is no longer necessary.

Merchants & Marine Bank is More Than Just a Bank for Your Business

Merchants & Marine Bank is invested in the needs of small business owners. We want to help you make sound business decisions when it comes to managing your money. Contact us today to learn more about our services and what we can do for you.