How to handle 6 common commercial insurance claims

When running a business, you do your best to prepare for the unexpected. That's what commercial insurance is all about: protecting what you've worked hard to build.

While every company has unique risks, some are widely shared — especially when it comes to claims. Progressive Commercial offers customized insurance options to address both common exposures and the specific needs of your business. The right protection can help reduce downtime, safeguard cash flow, and support faster recovery from unplanned events.

Let's take a closer look at some examples of common business insurance claims and explore the coverages that can help you manage them.

6 commercial insurance claims to be prepared for

From property damage and accidental injuries to compromised data, some of the most common business insurance claims include:

1. Liability claims
2. Product liability
3. Property damage
4. Workers' compensation claims
5. Business interruption claims
6. Cyber crimes

While this may not be an exhaustive list of commercial insurance claims, it's a great place to start when planning your coverage strategy. Here's how each of these claims works and how insurance can help.

1. Liability claims

Liability claims arise when your business is held responsible for causing injury or damage to someone else during normal operations. For example, if a customer slips and falls on a freshly mopped floor at a job site, your business could be liable for their injuries.

The insurance you need for this type of claim is general liability or a business owners policy (BOP) . Both can pay for medical expenses and legal fees related to non-employee injuries.

Liability coverage can also cover situations such as:

• Property damage your business causes to others
• Foodborne illnesses
• Slander, libel, and copyright infringement claims
• Damage to premises your business rents

2. Product liability

If a product you sell, manufacture, or distribute causes harm, illness, or damage to a customer, you can be held liable. For example, let's say your plumbing company installs a faulty heater that causes water damage in a customer's home. Product liability insurance would pay for repairs and replacement costs. It would also cover any legal fees related to the issue.

Product liability, also called products-completed operations insurance, is included in both general liability policies and BOPs. It's essential coverage for any business that works with products, including retailers and manufacturers

3. Property damage

While burglaries have been on a downward trend, small businesses are still the target 34% of the time , making theft claims common. But theft isn't the only threat to your property. Weather events and fire can also lead to significant damage.

Commercial property insurance helps protect your business assets. It can pay to repair or replace lost or damaged items you rely on such as computers, office supplies, furniture, and other business personal property .

While liability coverage can help if your business damages someone else's property, commercial property insurance protects your own. At Progressive Commercial, both coverages are included in a BOP, so you get the well-rounded protection you need most.

4. Workers' compensation claims

Employee accidents are a key concern for every employer. From sprains and strains to slips and falls, when your workers get injured on the job, you want to be able to take care of them.

Workers' compensation insurance can help pay for medical expenses, lost wages, and other related costs. It's typically required by state law and helps protect you and your team.

Once a workers' comp claim is filed, your insurer pays the benefits directly to your employees.

5. Business interruption claims

Sometimes the damages from a covered event, such as theft, fire, hailstorm, or vandalism, can force a business to shut down temporarily. If this happens to you, business interruption coverage on a BOP can help pay for lost income, relocation costs, payroll, and other related expenses.

6. Cyber crimes

From ransomware to data breaches, cyber crimes are increasingly common, with an estimated 2,200 attacks happening every day. If your business stores sensitive data, like customer payment information, even a single compromised email account can disrupt operations and cost time and money.

Cyber insurance coverage can pay for investigations and legal support if your business experiences data breaches , cyber attacks, and business interruptions due to those events. It can also cover legal or settlement expenses if your data is compromised.

Businesses that store large amounts of data or face higher cyber-risk may benefit from a standalone cyber policy. Smaller businesses with lower exposure can often add cyber coverage to a BOP.

How the commercial insurance claims process works

When an incident occurs, filing a commercial insurance claim quickly can help minimize disruption and speed up your recovery. Consider the following steps to file a commercial insurance claim:

• Seek medical attention right away if the claim involves illness or injury.
• Contact your insurer to report the incident as soon as possible.
• Document the incident with photos, written accounts, and any relevant records.
• Notify affected parties and submit IT or security reports promptly if the claim involves a cyber incident.

Once you've started a commercial insurance claim, Progressive Commercial and our trusted providers will help you recover quickly with a fast and efficient claims process.

Why choose Progressive Commercial to help protect your business

We have over 50 years of experience supporting business owners like you. Our insurance experts can connect you with customizable policies to suit your specific needs, along with competitive rates for a variety of business types.