Commercial insurance, or business insurance, helps companies to protect their intellectual and physical property and their financial assets. This includes losses that could result from lawsuits, property damage, workers compensation, loss of income, cyber and privacy issues, and more.

Commercial Auto Insurance coverage protects commercial vehicles along with the company employees, who operates the vehicles, when the other individual car policies do not offer that type of coverage.

Businesses with employees are required by law in most states to provide workers’ compensation, unemployment insurance and disability insurance in some states. Also, consider getting an employment practices liability (EPL) policy that protects your business against allegations of discrimination, harassment, and wrongful-termination of employees. Finally, keep auto insurance in mind if you or your employees are driving for work purposes. It can help cover the costs of possible accidents.

A good rule of thumb for budgeting for commercial insurance is about 20 to 30 percent of your business’s gross income. These costs may vary depending on the coverage you need and the risks of certain industries.