From employees to equipment and buildings, business owners understand the importance of having adequate commercial insurance to protect their operations from the unexpected. The proper coverage can prevent paying significant out-of-pocket expenses and provide financial relief in case a natural disaster or theft cause damage. There are many different types of property insurance that entrepreneurs should consider to maintain their investments.

While the term "commercial insurance" seems broad, standard policies cover a wide range of perils. Generally, the plan pays for physical damages to a company's property. This includes parking lots, adjacent buildings, and all interior spaces. If any of these areas sustain damage caused by storms, wind, fire, and other natural calamities, most carriers will pay for the repair and replacement costs after the policyholder pays their deductible. Depending on the area, a supplemental plan may be needed for damage caused by natural floods and earthquakes.

Under the commercial insurance umbrella, the most common types of policies are liability and workers’ compensation. Liability coverage pertains to injuries a customer sustains while located on a company's property. It also offers financial protection in cases when lawsuits are filed for an injured person's medical expenses and wage loss recovery. A workers’ compensation policy takes care of employees who are injured while they’re working. In general, staffers agree to waive any legal claims if they use the policy to pay for their medical costs and wage loss recovery. Some states require businesses to have workers’ compensation in place if they have a certain number of employees.

Coverage often depends on the industry the business is affiliated with. Real estate construction companies may need additional coverage compared to home-based businesses. At the minimum, a standard commercial insurance policy should include liability and property coverage. One of the best sources for knowing which plan is needed is through an experienced insurance agent. They can identify the right type of customized coverage for different companies.