Commercial/Business Insurance Explained

Businesses that rent or own property are responsible for that property. Commercial insurance transfers many of the risks associated with that property. Common forms of commercial insurance are similar to types of personal insurance. These include auto insurance, property insurance and liability coverage. If you own and are involved in the day to day affairs of a business you need to make sure the business is protected and your assets are also protected. Commercial vehicles require commercial insurance. Depending on what types of vehicles the business owns and how many vehicles they own, different types of policies are applicable. If a business owns many vehicles that are essential asset to the daily operation of the company, they will need fleet insurance. Companies that usually require fleet insurance include trucking and transport, taxi and limousine, as well as medical and ambulatory transport companies. An employer, whose employees drive company cars, and sometimes their own vehicle, can use commercial auto insurance to reduce the risk. This can include outside salespeople, executives or pizza delivery drivers. Most personal policies carried by individuals do not cover them when using their vehicle for work purposes, making it necessary for the employer to insure the driver and vehicle. Businesses that rent, lease, or own property must protect their business from risks associated with the property. Much like commercial auto coverage, commercial property insurance resembles homeowners' coverage but provides coverage focused on the needs of businesses. If a business is affected by storm damage, fire or water, losses can quickly mount and commercial property insurance protects against this risk. Property insurance protects the owner’s building, outdoor signs, furniture and equipment, inventory, fencing, landscaping, and others’ property. If a business is renting or leasing space property insurance is also available to protect the businesses assets. For example, rental property insurance protects the company’s physical assets against the risks of fire, water or storm damage. Liability protection protects the company against the negligent behavior of an employee or damages caused by normal business operation. Liability protection covers medical expenses, attorney fees and damages when you are legally responsible. Commercial insurance companies offer liability protection for professional liability, fire liability, medical payments, premises liability, products and completed operations, employer’s liability, employee benefits liability and employment-related practices liability, and errors and omissions. Commercial insurance needs vary from business to business.

Article taken from superpages.com