From equipment and vehicles to office buildings and inventory, business owners put a significant financial investment into starting and growing their operations. Unfortunately, unexpected scenarios can cause enough damage to affect the bottom line. Having a sound commercial insurance policy offers peace of mind. Here are several reasons why you need coverage in place.

4 Reasons Commercial Insurance Is a Must for Businesses

1. Protects Property

Most standard policies will pay for the repair or replacement costs if your property sustains damage. This coverage includes accidents caused by inclement weather, fire, theft, and vandalism. The coverage typically extends to business possessions such as laptops, office furniture, electronic equipment, and products manufactured by your company. 

2. Covers Legal Claims

Businesses are susceptible to lawsuits filed by customers, vendors, and other third parties. An individual could sue you for pain and suffering with the claim that your product or service caused them physical harm. A contractor may allege you underpaid them. Commercial insurance takes care of the legal claims, attorney fees, and financial judgments so that you don’t have to pay out of pocket.

3. Pays for Workplace Accidents

Most commercial insurance policies typically include workers’ compensation. Businesses are required by law to have coverage if they have a certain number of employees. A standard policy covers you if an employee is injured while on company time by paying for the medical expenses and wages lost during recovery. As a condition of taking advantage of the coverage, employees agree not to sue their employer. 

4. Shields Vehicles

If your company uses cars, trucks, or vans for business purposes, a commercial auto insurance policy protects the vehicle if it is in an accident. Specifically, the coverage pays for the repair and replacement costs for damaged cars. Depending on the policy, most also include coverage for employees and passengers injured in business vehicles as well as other drivers involved in the accident. 

For nearly 36 years, Toohey Insurance Service in Somerset, KY, has helped businesses secure affordable and customized coverage. The locally owned agency is independent, which means it works with dozens of leading commercial insurance providers to ensure you’re getting protection tailored to your company’s unique needs. To learn more about policy options, call the A+rated Better Business Bureau® firm at (606) 678-0540, or visit the website for more information on their services.