For business owners, understanding the difference between commercial and business insurance is essential. Actually, they are the same. Commercial insurance and business insurance make up the category of insurance that provides coverage for business owners and their businesses, no matter if they are large or small.
The best way to determine the right insurance coverage for your business is to do a comparison of the different policies available. Commercial and business insurance offers a wide range of coverage, as well as advantages and disadvantages, when it comes to protecting the assets of your business, staff, and customers.
When you get commercial and business insurance for your business, you are investing in long-term protection. A good insurance policy will give you the ability to repay any claims that arise from accidents and injuries sustained by employees or customers. Many times, commercial and business insurance policies will include cover for legal expenses, as well as replacements and compensation for property damages incurred as a result of an accident. Regardless of whether you are thinking about covering your business or your family, make sure that you fully understand the differences between commercial and business insurance.
There are two main types of coverage provided by different commercial insurance policies. These two are Indemnity and Non-Indemnity. Indemnity insurance is common in many businesses and is generally provided as a type of cover for the business itself. For example, some people use Indemnity as a way to offer protection to their vehicle owners from third party damages, fire, burglary, and property. Others use it to protect business machinery and equipment from theft or damage by fire, water, or smoke. While the Non-Indemnity, the insurer undertakes to pay a sum of money – or a number of periodical payments – to the insured in the event of a future uncertain event occurring. Thus, for example, disability insurance would be classified as non-indemnity as if the future, uncertain event of the insured becomes unable to work occurred, the insured would be paid out a lump sum of money or periodic payments as per the stipulations of the contract concluded between the two parties. You should also be aware that this type of coverage has higher rates than the typical Indemnity insurance that you would find with other companies.
Another advantage of choosing commercial and business insurance is that you can often negotiate price discounts with an insurance company. One example of this would be if you have employees on a contract basis and you know that you are going to need to pay for the coverage out of your own pocket. By paying for the coverage out of your own pocket, you may be able to save money in the short-term, but in the long-term, you will have to pay more than what the insurance company recommends.
When it comes to commercial and business insurance, you should carefully weigh the pros and cons of the different policies that are available to ensure that you get the best policy. Commercial and business insurance is a very important part of any business and knowing what it covers for your unique business needs can help you make the best choice when purchasing the right policy.