• A fire could destroy your building and the contents inside.
• A burst water pipe could damage your documents, drawings, or other valuable papers.
• A storm could damage your outdoor sign.

What does business property insurance cover?

Small business property insurance is one of the most important investments that protects the future of your business. Here are some of the important aspects of your business that commercial property insurance helps protect:

What does commercial liability insurance typically cover?

Business is inherently risky, but business liability coverage safeguards against many known and unknown risks. Commercial liability insurance coverage protects you, your business, and your employees from claims involving bodily injury or property damage (up to the limits of your policy). Policies shield you from the expense of out-of-court settlements, litigation, and judgments awarded by courts.

Lawsuits, investigations, and settlements

If damages are filed against you or you’re sued, general liability insurance covers the insurance company’s investigation and attorney expenses, any judgment or settlement, medical expenses in case of injury, and bonds if they must be subsequently posted.

Injury damages

Claims can arise from bodily injury or property damages resulting from accidents on your premises or from your products, your operations or advertising for your business.

Miscellaneous

Liability insurance can also cover things you may not have thought about, such as advertising injury in the event your company’s marketing violates someone’s copyright. Business liability insurance coverage even offers some protection against alcohol-related accidents (as long as your company is not in an alcohol-related business, such as the manufacture or distribution of alcohol).

What does business liability typically not cover?

Here are some situations that would not be protected by general liability insurance coverage:

Punitive damages

Though there can be exceptions, a general business liability policy rarely pays for punitive damages resulting from a lawsuit.

Intentional acts

General business liability insurance does not cover damages or injuries resulting from expected or intentional acts. For example, if an employee assaults a customer, your business liability coverage would not cover the damages if the customer sues. But if the employee was defending himself or the company from a criminal act, the liability insurance would provide coverage.

Your work

This is referred to as the “workmanship” exclusion, and it is common in general liability policies. Insurance policies do not respond to what would normally be covered by a company’s warranty for their work.