What Is the Main Purpose of Commercial Insurance?
Hey everyone,I’ve been trying to wrap my head around the real core purpose of commercial insurance. I get that it’s supposed to “protect businesses,” but that’s kind of vague. What exactly does it protect against? Are we talking about property damage only, or does it include stuff like legal issues and loss of income? I recently came across something called commercial strata insurance, and from what I understand, it’s different from general business insurance—it seems more focused on shared buildings and infrastructure, especially in complexes with multiple business units. That made me wonder how many different layers there actually are to this kind of coverage. If anyone has real-world experience or just a clearer idea of what the main function of commercial insurance is—not just in theory but in practice—I’d love to hear your perspective. Does it mostly come into play after unexpected events, or is it something that helps with day-to-day operations too?
For instance, if a customer slips and injures themselves in your store, the liability coverage kicks in and handles the legal and medical costs. And if your business has to shut down temporarily because of an insured event, like a major water leak, there’s often coverage for the income you lose during that period. It doesn’t keep your business running in the literal sense, but it gives you a cushion so you don’t go under while sorting things out.