Commercial insurance is a special type of insurance policy designed for business organizations. Insurance is primarily a form of risk management that guide against the risk of sudden loss of lives and properties. In other words, insurance is an assurance that no matter the loss to life and property of an insured individual or company, the insurance company will pay the damages. Commercial insurance is therefore a risk management tool for protection in advent of losses to lives or properties of an organization. It is also referred to as business insurance.
Types of commercial insurance
Due to diversity in business types, commercial insurance companies provide policy that covers all types of businesses. Commercial insurance is thus broken down into several facets and these are;
- General liability insurance – this is a type of business insurance that covers any injury or grievance to third party caused by a company’s activity or product, and the possible lawsuit that may follow. A company may accidentally harm an individual directly or indirectly, without proper insurance the company might incur serious loss in compensation and lawsuit.
- Professional liability insurance – this is also known as error and omission insurance. It is a type of business insurance that covers the protection of businesses against errors, negligence, malpractice and shortcomings in delivering professional services to clients.
- Commercial property insurance – This type of business insurance covers the protection against damages to company properties due to some seen and unforeseen events. Causative events include fire, storm, civil unrest, vandalism and all natural disasters. Property as regard this kind of business insurance could mean machinery, money, buildings and document.
- Worker’s compensation insurance – This is a business insurance that covers a company in case of injury to workers during business activities.
- Commercial auto mobile insurance – This type of insurance covers a company in the event of damages to auto mobiles used in business such as cars, trucks, and trailers.
Although there are other types of commercial insurances they are just variations of the fore mentioned.
Benefits of commercial insurance: Commercial insurance can benefit companies in so many ways. Its major benefits lie in the fact that it helps companies to cope with any unexpected loss. It also protect workers in a company from ending up with nothing in the event of terminal injuries during work. It helps maintain business flow barring any socio-economic setbacks.
Commercial insurance has many disadvantages for both companies and insurance policy companies. One of the major disadvantages is fraud. Companies tend to defraud their insurance companies off insurance money when they face bankruptcy. Choosing an insurance company for your business can be difficult, no better way to achieve this than through the internet. In these times of financial instability, insurance is the key to stabilizing your company and keeping it in business.contact us