Make Sure You Get The Right Commercial Insurance Coverage Types
Posted on: 6 October 2022
Buying commercial insurance does not have to be convoluted, but in the stress of setting up a new business, you can easily find yourself overwhelmed. You need to meet with an insurance agent who offers commercial and business insurance to ensure you choose the correct policy for your situation. Sometimes the terms themselves can be confusing, and instead of trying to keep track of it all yourself, allow an agent to make things a lot clearer.
Business Liability Is Not the Same as General Liability
Commercial insurance includes a lot of coverage, but for most companies, it has its limits. Generally, you'll find that commercial insurance or business insurance includes general liability but not business liability. Business liability is sometimes called professional liability, and it refers to liability stemming from your work. If something you do as part of your work causes harm, such as including incorrect information in a set of instructions, business liability would cover that. General liability is only for harm caused by a property issue or physical issue, such as slip-and-fall cases in stores or one of your trucks hitting a wall on someone's property.
You May Find Policies That Include Everything, but Never Assume Anything
Given how necessary business liability insurance is for so many people, you may find commercial policies that actually include it automatically. However, never assume you know exactly what an insurance company's coverage actually covers. Always ask about specifics so that you know if you need to add additional coverage before buying the policy.
Be Wary of Minimum Coverage Amounts
When you don't have a lot of spare cash, minimum coverage amounts can be very helpful. You get a bit of coverage, so if something happens, you're not totally financially ruined. But as your business improves and your income improves, add more coverage, both by increasing the coverage limits on your existing policies and adding more optional coverage. Having that coverage and knowing that you can cover seemingly outrageous claim amounts will make you feel so much calmer. You can get coverage for lost income or for commercial vehicles if you add a fleet of delivery trucks to your business, for example.
Don't blindly grab the first commercial policy you see that you can afford. Take the time to speak with an agent about exactly what you need.
Contact a company like Briggs & Williams Insurance for more information about business liability insurance.
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