What is Commercial Insurance?
Let’s say you’re a fledgling in the business world; maybe you just started up your artisan contractor’s business or you’ve taken your love for baking and have turned it into the sweet-smelling shop you’ve always dreamed of having. Perhaps you’re taking over a legacy business and are worried about protecting what you’ve been given. Whatever the situation is, you’re going to need commercial insurance if you’re going to run a business. Commercial insurance covers any insurance that is designed to protect a company, its assets, and its employees. But no two companies are alike. All commercial ventures have unique needs, hence it is important to discuss your needs up front with an insurance provider contact us now.
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For the sake of generality, let’s look at one of the biggest contributing factors to commercial insurance rates – size. The size of a business directly affects the amount of coverage it will need. Below are some typical business sizes and what types of commercial insurance might be right for them. These are merely for comparison. Consult with your insurance provider, or call us here at Farmer Brown, before making any decisions about what type of commercial insurances to purchase.
| Size of Business | Examples of Businesses That Fall Under This Size | Common Insurance Packages for This Type of Business |
|---|---|---|
| Micro | Bookshops, local tour businesses, bed, and breakfasts, etc. Any business that employs fewer than 10 people and has a yearly revenue of less than $1,000,000 | Business Owner’s Policy, or a combination of:
|
| Small | Artisan builders and contractors, bakers, artists, coffee shops, etc. Any business that employs fewer than 50 people and has an annual revenue of no more than $2,000,000 | Business Owner’s Policy, or a combination of:
|
| Medium | Restaurants, Construction companies, small retail chains, small grocery chains, etc. Any business that employs fewer than 250 people and has an annual revenue of no more than $50,000,000 |
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| Large | Call centers, Large retail chains, Real Estate Giants, Big data chains, etc. Any business that employs more than 250 people and makes more than $100 million annually |
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As you can see, the larger the business is, the more types of insurance are recommended to keep the business you’ve worked so hard to get secure.
Warning
Did you know?
There are some small businesses that will still use some of the more specific insurance types, like contractors and artisan builders, who need builder’s risk insurance.
What Type of Commercial Insurance your Business Needs?
Size is one of the biggest factors, but it certainly is not the only determining factor that goes into deciding what type of insurance your business needs. Other factors include:
- Whether the building is either owned by your business, is leased, or is rented. For instance, a company who owns their own building may pay less than someone who rents a building, but someone who leases a building may also pay less than someone who rents.
- How many years a company has been in business. For instance, an established company who has a track record of caution and attention to detail is easier to back with insurance than a new company with an unknown risk level.
- Where the company is located. If a company is in a rougher neighborhood, their insurance might be higher due to the higher risk of needing to access that insurance.
Are you starting a new business and are unsure of what type of insurance policy you need? Are you’re a business that has been around for a while, but are in need of a overhaul in your coverage due to the expansion of your services? Farmer Brown Insurance is here to help you out with your questions and concerns regarding commercial insurance. For a free quote, fill out this form today. One of our licensed agents will respond to most general queries in 24 business hours. Alternatively, you can call and reach one of those agents at 1-888-973-0016. We look forward to serving you and all your business needs.
What are the main advantages of choosing FarmerBrown.com for insurance quotes?
A Broader Choice
We work with more than 30 A-rated insurance companies, many of which your local brokers may not have access to.
5-Star Customer Service
We pride ourselves on our knowledgeable and professional sales team, who prioritize attention to detail and are prepared to handle complaints 24 hours a day.
Tailor-made service
We negotiate with the best insurers to achieve effective insurance solutions for you.
Everything you need to know about Contractors Insurance is here.