When you run a business, you need to have commercial or business insurance. Very often, there are policies that are required by law, but there are also other types of coverage that are optional but which can protect you in the long run. Since there are so many different types of commercial insurance, and since it is different than the insurance you would get for yourself personally, it's good to understand your options and a few basics about this type of coverage. Note a few commonly asked questions about business insurance and be sure to cover these with an agent so you get the best information for yourself.

1. What does business insurance cover?

Don't assume that a commercial liability insurance policy will cover every loss or litigation your company may face. You need to ensure that you are choosing the right policies for your business and type of company and for the risks you may face in particular.

As an example, one type of policy that is very popular today is called cyber crimes insurance. This protects your business from loss due to theft of information from your computers and databases, as well as risks of exposure because of internet use by employees and customers. Specialty coverage may be purchased for one-day events, such as concerts or seminars, as these may not be covered in your standard liability policy.

2. How are claims filed?

The way claims are filed will depend on the insurance company and the type of coverage. For example, if a business suffers property loss or damage due to a fire, the business owner may file the claim. However, if a customer should slip and fall on the property of the business, the customer may file the claim with the insurance company directly. The insurance company may then decide to negotiate or try to deny the claim for whatever reason, without going through the business owner.

3. Is business insurance tax-deductible?

Most forms of business insurance are tax-deductible, as long as the insurance is directly related to operating the business. Some coverage, such as loss of earning coverage that an individual business owner may carry for themselves, may not always be tax-deductible. Usually, your insurance carrier can answer this question, or you might discuss your options with an accountant before you purchase your insurance so you know if you can deduct the premiums at the end of the year.

For more information, contact a local commercial insurance company in your area. 

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