What Every Business Owner Needs to Know About Commercial Insurance

What Every Business Owner Needs to Know About Commercial Insurance

Commercial insurance through AAA.
AAA Offers Insurance for Large and Small Businesses
Laura Wahler

As a business owner, you probably wear a lot of hats. Maybe you fill the role of marketing assistant, office manager, and janitor – all in one day! One thing you don’t want to worry about, though, is if your business is protected by the right commercial insurance policy.

Commercial insurance is the term used to describe insurance policies that protect businesses, their owners, and their employees. But, it’s not just for big businesses! In fact, the Insurance Information Institute reports that even small, home-based businesses may require additional insurance to protect against business property loss or liability. 

Small businesses with less than 100 employees – like many local restaurants, shops, salons and construction companies, for example – may need what’s commonly called a BOP, or Business Owners Policy. This type of policy can offer affordable protection against many of the most common risks associated with business ownership.

There’s no such thing as a one-size-fits all commercial policy, though. Just like your own personal home and auto insurance coverage, the specific commercial policy you need is as unique as your business. Ask yourself: 

  • What inventory and equipment does your business require?  
  • Does your company own any vehicles? If so, who drives them and how are the vehicles used? For example: Do they haul heavy equipment, or are they used for the driver’s daily commute? 
  • What types of risks do you face in your specific industry? For example, a medical office and a retail store may need different types of liability insurance.
  • Are there any changes you can make to lower your insurance cost? For example, you might be able to lower your premiums by offering risk-management training or by electing a higher deductible.

Keep in mind: It’s important to remember that your needs change as your business grows! Be sure to set a reminder on your calendar to review your commercial policy each year.

A licensed AAA insurance agent can help you compare all your coverage options to make sure your personal and professional interests are covered. Request a quote today!