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What Exactly is Commercial Insurance?

When people speak of commercial insurance, because it can cover a range of items, it's often a grey area in understanding what commercial insurance is exactly. The short answer is: commercial insurance is such that covers companies and their assets. It protects them against lawsuits, natural catastrophes, theft, and other unexpected occurrences.

For the same coverage, commercial insurance and company insurance can be interchanged. Every business is different and each will have a different commercial insurance policy depending on its operations, location, and various other factors. Through commercial insurance, you can protect your business by identifying potential risks and then comparing policies to determine the best pricing.

What Are the Different Types of Commercial Insurance?

General liability coverage, commercial automobile insurance, and workers' compensation are the most popular types of commercial insurance. There are many types of business insurance to protect against various risks.

These types of commercial insurance coverage are essential for most businesses:

  • General Liability Insurance

  • Commercial Auto Insurance

  • Worker's Compensation

  • Professional Liability Insurance

  • Commercial Property Insurance

  • Business Interruption Insurance

What is The Process of Commercial Insurance?

The purpose of commercial insurance is to help you manage your financial burden in the event of an unexpected expense, theft, or damage. After you have made the necessary claims, your insurer will issue a payment to cover the losses. Your insurer will then make a payment to assist you in recovering your losses. Your commercial insurance company might also handle legal representation if you are being sued.

You may recognize some components from your personal insurance policies when you look at commercial insurance policies. These components include:

  • Premium: this is the amount that you pay each month or annually to keep your coverage.

  • Deductible: is the amount that you will have to pay before your policy kicks in. In general, your premium will be lower the higher your deductible is.

  • Policy limits: are the maximum amount that your policy will pay during a policy period. A per-occurrence limit is the maximum amount your insurer will pay for one incident. It can also be referred to as a total policy limit.

  • Exclusions: You will not be covered for certain incidents. For example, commercial property insurance policies often exclude earthquake damage. General liability policies usually exclude employees from inflicting intentional injury or damage.

  • Additional coverages and endorsements: These are add-ons that can be added to your commercial insurance policy to increase its coverage. Your premiums will increase if you add endorsements or additional coverages.

In most cases, you will need to have a commercial insurance policy in place before an accident occurs to be covered. The policy period may begin on the day that you purchase commercial insurance, or it can start the day after.

What is The Cost of Commercial Insurance?

The cost for business commercial insurance depends on many factors including your industry, number of employees, location, and whether or not you've ever filed claims.

Commercial insurance coverage is priced at a premium, just like most other insurance policies. The deductible is the amount you have to pay during the claims process. The deductible you pay will usually affect the premiums. Limits are also available for commercial insurance policies. This limits the amount that an insurance company can pay out in a given year. Higher the limits, the more expensive.

To learn more about how Richard Dean Insurance does commercial insurance, click here - or give us a call directly and an expert agent would be more than happy to walk you through your options for affordable yet premium commercial insurance: (941) 999-3131



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