To manage risk, all businesses need commercial risk insurance. Without this safeguard, businesses are at significant risk and can even face financial ruin without the protection that insurance affords. "Risk management is critical for every business, and being prepared for risk--whether from a force of nature, new government regulations, or something else--can be the difference between success and failure (2)." Understanding the ins and outs of commercial risk insurance is essential for any business that wants to protect itself against unforeseen risks. Overview of Commercial Risk Insurance Depending on the nature of a business, a company or organization must procure insurance as required by the law. Yet often the minimum insurance isn't enough to offer all the protection a business truly needs. Businesses face all kinds of risks. Storms can wreak havoc on physical property like buildings and even servers. Sensitive information might be stolen resulting in an expensive law suit. Risks can't often be foreseen, so having insurance policies in place that protect the business once events come to pass is the only reliable solution for a responsible business. Of course, there are many commercial risk insurance plans. Policies can be tailored to meet a business's specific needs. In some cases, a business needs to heavily protect its physical properties (1). In other cases, a business might need to protect against liabilities associated with its industry. For instance, employees might face certain on-the-job risks. A commercial insurance provider or insurance advisor can assist organizations as they try to determine the nature and level of insurance they need to go forward. Types of Coverage Packages Businesses should consider all different types of insurance packages and coverage. While your insurance provider will be able to go over each specific types of coverage, generally businesses must examine policies for professional liability, commercial property, insurance for directors and officers, media liability, cyber liability, workers compensation, fiduciary responsibility, and specialized policies designed for specific business features. Not every business needs all these types of insurance; however, your expert insurance advisor can help you decide which you need based on the types of risk your business faces. Insurance as an Essential Investment Businesses face substantial risk by failing to carry commercial risk insurance or carrying too little insurance coverage. Carrying insurance is a business expense that cannot be ignored. New or small businesses may not always understand the risks that face or how much insurance they should carry. An advisor can even help you determine if you need interrupted business insurance. If something happens to your business--a fire, for instance--you can be compensated for lost profits. To obtain the commercial insurance your business needs, it's important to work with a provider that can give you the expert insight you need to make the best insurance decisions for your business. Many businesses choose to work with a single insurance provider so they can obtain discounts on the policies they procure. Be sure to investigate the ins and outs of each policy so you understand the nature of the coverage you obtain. Sources: 1. N. Madison "What is Commercial Insurance" Wisegeek.org, http://www.wisegeek.org/what-is-commercial-insurance.htm. 2. "Commercial Risk Insurance," BayPoint Benefits, http://baypointbenefits.com/index.php/solutions/commercial-risk-insurance. Darian Tran works in human resource and has a comprehensive knowledge of the industry. He lives in San Francisco and enjoys traveling around town. Article Source: http://EzineArticles.com/expert/Darian_Tran/1874327 business insurance, Home insurance, insurance, insurance online, life insurance Article Source: http://EzineArticles.com/8610633