If you are not an insurance agent, then you are probably very confused by the many different types of insurance policies available for purchase. Every company, whether it is large or small, should have a good commercial insurance policy for adequate financial protection in many different situations. Regardless of the type of company you own, if you find yourself asking “what is commercial insurance?”, then you need to keep reading about the various types of coverage commercial insurance provides.
Just as its name suggests, property insurance compensates companies for damages or losses to their property. One example of this policy in action is the payout you receive if your office is damaged in a fire.
Another type of commercial insurance is liability insurance, which covers any injury that you may cause to a third party’s property or person. This includes any injuries that your customers may sustain while they are visiting your corporate property and injuries that are inadvertently caused by an error in judgment. Liability insurance can be further broken down into malpractice insurance, automobile insurance, and directors’ and officers’ liability insurance.
As you can see, commercial insurance offers very broad protection for a variety of situations and risks that you may find yourself in. If you have ever wondered “what is commercial insurance?”, now you know what it is and why it is so important for your business.