What is a Commercial Business?

In easy-to-digest terms, commercial business is a company or individual involved with selling a product or offering a service. Typically, a commercial business operates within a specified city or region.

To be considered legal a commercial business must obtain a license from the city it plans to operate from. In most cases, there are many requirements for operating within a city or region. You may need approval from the city’s Planning Department or zoning approval may be required. However, depending on the specific situation, a business owner planning to operate a commercial business can be given a conditional-use permit.

Are Commercial/Industrial Businesses the Same?

Actually, while they may sound similar – they mean different things entirely.

Industrial business refers to a business that involves manufacturing goods. For example, businesses focused on logistics, financial services, or utilities don’t fall under industrial business. Why? Because they don’t manufacture anything.  

Commercial business, on the other hand, has to do with any business or venture done with the main motive of making a profit.

The main distinction between an industrial and commercial business is that while industrial businesses deal mostly with manufacturing (via factories that are usually on the outskirts) commercial businesses focus on serving customers by finding out their needs and meeting them in the most persuasive way.

Now that you know what a commercial business is and the difference between industrial and commercial business, let’s focus on how you can insure your commercial business.

No matter how great your business is doing right now or how positive you are about the future health of your commercial business, bad things can happen without warning! When they do happen do you react or respond? That depends on whether your business (prior to the occurrence) was properly insured or not.

If it is properly insured you “respond” by contacting your insurance agent to come in and sort things out. If it is not properly insured you “react” by going around in circles or spending heavily to bring things back to normal.

If you’d like to respond – and not react – to unforeseen circumstances that occasionally happen in your commercial business, you can connect with me here on LinkedIn. I can give you valuable insights on Commercial Business Insurance: https://www.linkedin.com/in/paulgillihan/