Commercial insurance provides coverage for businesses against a variety of risks and losses. There are four main types of commercial insurance: general liability insurance, which protects against claims of negligence and injuries; product liability insurance, which covers losses from defective products; professional liability insurance, also known as errors and omissions insurance, which protects against malpractice and negligence in providing services; and commercial property insurance, which covers losses and damage to business property from events like fire or storms. It is important for businesses to have adequate insurance to protect against financial losses that could devastate the company.

1. Commercial Insurance
Commercial or business insurance provides coverage for your business in the case of almost
any eventuality. First off, what are the types of coverage available for a business?
According to information from the US Small Business Alliance:
General Liability Insurance
Business owners purchase general liability insurance to cover legal hassles due to accident,
injuries and claims of negligence. These policies protect against payments as the result of
bodily injury, property damage, medical expenses, libel, slander, the cost of defending
lawsuits, and settlement bonds or judgments required during an appeal procedure.
Product Liability Insurance
Companies that manufacture, wholesale, distribute, and retail a product may be liable for its
safety. Product liability insurance protects against financial loss as a result of a defect
product that causes injury or bodily harm. The amount of insurance you should purchase
depends on the products you sell or manufacture. A clothing store would have far less risk
than a small appliance store, for example.
Professional Liability Insurance
Business owners providing services should consider having professional liability insurance
(also known as errors and omissions insurance). This type of liability coverage protects your
business against malpractice, errors, and negligence in provision of services to your
customers. Depending on your profession, you may be required by your state government to
carry such a policy. For example, physicians are required to purchase malpractice insurance
as a condition of practicing in certain states.
Commercial Property Insurance
Property insurance covers everything related to the loss and damage of company property
due to a wide-variety of events such as fire, smoke, wind and hail storms, civil disobedience
and vandalism. The definition of "property" is broad, and includes lost income, business
interruption, buildings, computers, company papers and money.
To read more, visit http://www.sba.gov/content/types-business-insurance.
In a strange way, all varieties of insurance, including commercial insurance is based on
wagering, used to hedge against the risk of a loss. Insurance has a lot of jargon.
An insurer, or insurance carrier, is a company that sells insurance; the insured, or
policyholder, is the person or business buying the insurance. The premium is the amount
charged by the insurer for coverage. As a result of insurance, the practice of risk

2. management has developed over time. Risk management strategies are diverse and include
minimizing the negative consequences of the risk, or even accepting such consequences. An
actuary is someone who deals with the financial impact of risk and uncertainty. Actuaries use
a lot of mathematical modeling. Complexity is part of life, and insurance mirrors that. Your
best bet is to call an independent insurance agent to cut through all the complexity.
It's impossible to avoid risk. Life is all about risk and reward. The key to it all, however, is to
protect yourself from the perils of life. Financial loss can financially devastate an individual,
much less a business. Owing to inflation, losing everything in a calamity costs at least three
times more to replace and bounce back from. If a business doesn't have coverage, it can
collapse because of having to stay closed. In a way, its kind of like losing one's job and not
having another source of income. Getting business insurance however, can help to protect
your business.
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