Do I need commercial insurance if my business has no inventory?

If you own a service-based business such as a nail salon or air conditioner repair shop, then it’s probably not very likely that you have a lot of inventory to worry about.  In fact, many owners of service-based businesses assume that there is no reason to hold commercial insurance because they have no inventory that would need to be replaced.  The truth is that these types of businesses are often the ones that need commercial insurance the most.

Commercial insurance policies cover a lot more than just a business’ inventory.  They can also be written to cover your equipment, vehicles, tools, and in some cases even provide protection in the event of a lawsuit. For a service-based company, that means a policy can protect virtually everything you need to stay in business.

Even though your company doesn’t have much in the way of merchandise, odds are good that you have thousands of dollars invested in tools and equipment.  In the event of a crime or natural disaster, it’s possible to lose all of these things.  That could mean being out of work for weeks while everything is replaced out of your business’ own funds.

Commercial insurance can also include coverage for the structures and real estate that your business owns.  Storage buildings, storefronts, and manufacturing facilities can all be covered under a commercial property insurance policy.

If you’re thinking about purchasing a new commercial insurance policy, or just updating the one you already have, call the agents at 1st American Insurance Agency.  They have years of experience helping business owns find insurance that meets their needs without blowing their budget.