Buying commercial insurance to protect your business is the smart thing to do.

Most people don’t think they will ever need it. However, a study showed that 4 out of 10 businesses will end up making a property or liability claim in the next 10 years. For business owners, that means you have a 40 percent chance of filing a claim. What type of claims are the most common? We look at the top 10 here.

What commercial insurance policies cover

First, let’s review what some commercial insurance policies cover:

Commercial Property. This type of policy protects your business against property damage or loss of assets such as equipment, machinery, business vehicles, merchandise, truck cargo, and equipment breakdown.

General Liability. This type of policy protects your business against financial loss resulting from injury or property damage of others.

Professional Liability. This policy protects you against loss from a claim of negligence, errors, or omissions while performing professional services.

Loss of Income. This protects you in the event of a temporary interruption of business like a fire or flood.

Employment Practices. Another type of liability insurance that protects employers from claims made by employees that their legal or civil rights have been violated.

Other types of commercial insurance:

•  Worker’s Comp

•  Commercial Umbrella

•  Commercial Auto

10 most common types of commercial claims

Let’s look at two factors, the most common claims, and the costliest claims. Burglary and theft ranked first regarding the number of claims; however, the costliest claims were attributed to reputational harm, which is covered under General Liability. Burglary/theft averaged $8,000 in claims, while reputational harm averaged $50,000.

Some of the most common claims, such as fire damage, are also the costliest. Fire claims find themselves ranked in the top five for most common and costly claims.

Here are the 10 most common claims:

1.  Burglary and theft (this may include theft by employees)

2.  Water and freezing pipes (including roof damage from snow/ice and damage to frozen pipes)

3.  Wind and hail

4.  Fire

5.  Customer slip and falls

6.  Customer injury and damage

7.  Product liability

8.  Struck by an object

9.  Reputational harm

10.  Vehicle accident

10 Costliest claims

1.  Reputational harm ($50,000)

2.  Vehicle accident ($45,000)

3.  Fire ($35,000)

4.  Product liability ($35,000)

5.  Customer injury or damage ($30,000)

6.  Wind and hail damage ($26,000)

7.  Customer slip and fall ($20,000)

8.  Struck by an object ($10,000)

9.  Water and freezing damage ($17,000)

10.  Burglary and theft ($8,000)

At Avante Insurance, we can help you choose the right coverage for your business. Contact us for a free quote.