Starting a business? You may be looking for a way to reduce the risk that your company takes on. Thankfully, there are several ways to do this with commercial insurance. If you have never shopped for commercial insurance before, here are 3 questions you may have about it.

Is It Required To Have Commercial Insurance?

It's possible that state laws require you to have certain types of commercial insurance, depending on what kind business you have. Some types of insurance include:

• Disability – A way to pay for wage replacement when an employee is injured or becomes ill.
• Unemployment – Provides money to employees that are fired.
• Workers' comp – Protects any employee that becomes injured while working for you and pays for all associated medical bills and related costs to the injury.
• Liability – Protects your business from an error that could cause you a financial loss.

You should work with an insurance agent to figure out what types of insurance your business will require.

Should Liability Insurance Be Purchased Even When It's Not Required?

Liability insurance really depends on the type of business that you have, and the potential damage that could be caused if a mistake was made. In some situations, you can give your business protection by having a contract with your clients will not make you liable for certain problems. You may have a business that is low risk and doesn't require a policy.

For example, if your business is wedding photography, there is a chance that something could go wrong on the job, leaving a client without any photos from their wedding day. Liability protection would be a great idea to protect you from a lawsuit, since you will be unable to correct the problem after the day has passed.

How Are Claims Made With Commercial Insurance?

The claim process is very similar to what you experience with home or auto insurance. You make a formal claim with the insurance provider, and it is processed by an adjuster. If your claim falls within the parameters of the coverage you purchased, you will receive compensation for your losses as defined in the insurance policy.

For more information about commercial insurance, speak with a local agent at a company like Matlack & Company. They can provide you an estimate so that you know how much each type of commercial insurance policy will cost for your own business and its unique needs.