Understanding Insurance Terminology

Understanding Insurance Terminology

Building Your Commercial Insurance Policy: Which Coverage Options Should You Consider?

by Vilma Maki

With companies operating in so many different sectors, it is impossible for insurance companies to offer a single type of commercial insurance that meets the needs of all business owners and companies. That is why insurance companies offer so many different types of commercial insurance options that can be combined in a virtually endless number of ways to create truly customized policies to meet your specific business insurance needs. Unfortunately, while these many coverage options help to ensure you get the best possible coverage, they can also make the task of purchasing business insurance a bit complex. This is why it is always best to work with a commercial insurance agency when selecting your coverage options. Below, you will learn more about some of the coverage options that you may wish to consider when building your commercial insurance policy.

Commercial Property Insurance

Even if you do not own the property where your business is located, you may wish to consider purchasing commercial property insurance. This is because in addition to protecting the actual location of your business, this type of commercial insurance will protect all of your belongings including office equipment, inventory, office furniture, and tools of your trade. 

Cyber Insurance

With most companies now making use of technology for things such as storing customer records and payment information, cyber insurance is an increasingly important type of commercial insurance for business owners to consider. This type of coverage will ensure you and your business are protected from the financial risks that come along with the potential of cyber-related incidents such as a data breach that compromises customer information.

Commercial Auto Insurance

If you or any of your employees utilize either a company vehicle or your own private vehicle for business purposes, you will need to purchase commercial auto insurance. This business-related driving does not need to be significant in order to require this type of insurance coverage since personal auto insurance policies will typically provide no coverage at all if the vehicle is being driven for business purposes when an accident occurs. 

Commercial Liability Insurance

While commercial property insurance will protect the physical property in and around your business, it will not provide any protection for the individuals who visit that property. This is where commercial liability insurance comes into play. In the event that someone is injured on your property, this insurance coverage will ensure you are protected against being held personally liable for the costs associated with those injuries. 


About Me

Understanding Insurance Terminology

After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.