Common FAQs About Commercial Insurance

Running your own business can be challenging, and you likely have many questions about all aspects of it, including commercial insurance. Here are some common FAQs about commercial insurance:

What is professional liability insurance?

This coverage provides liability protection for claims made against your services or products, such as failing to perform work or causing losses as a result of mistakes in these services or products.

Are employees’ personal autos covered under commercial auto insurance policies when they use their cars for business?

Usually a company’s commercial auto insurance includes an endorsement that covers employees using their private vehicles for business. However, the employee’s personal policy would still be the primary insurer and would pay for any damage to an employee’s auto, even when it’s used for business purposes. The endorsement would apply only after the personal coverage is used up.

When should you buy workers compensation insurance?

Most state laws require businesses to carry workers compensation if there’s more than one employee. This varies from state to state, so ask your insurance agent.

What coverage is needed for home-based businesses?

Homeowners insurance usually doesn’t cover home-based business losses. Sometimes commercial insurance can be added onto homeowners insurance, but coverage may be insufficient. Consider a business-owners policy, which covers liability for yourself, employees, buildings, and more.