When business owners are looking for the best insurance policy for their business, they often confuse the terms “commercial insurance” and “commercial insurance.” While commercial property insurance covers company belongings, business liability insurance covers actual business operations. If you're found to be at fault for an incident that causes bodily injury or property damage, business liability insurance pays the costs. This type of insurance extends to your neighbors, customers, suppliers, vendors, staff members, and partners. The most obvious difference between business insurance and commercial auto policies has to do with the way work-related vehicles are used.
Commercial car insurance covers vehicles used for trips with regular traffic, while commercial car insurance covers specialized vehicles designed for specific jobs. An 18-wheeler that delivers products to warehouses from one city to another needs commercial insurance. Conversely, a courier who delivers documents to the other side of town may be covered by a business insurance policy. There are two main types of commercial insurance.
Commercial property insurance helps pay for damage or loss to commercial property. Business liability insurance helps cover the cost of lawsuits brought against your company. For example, if your business has a restaurant that also offers home delivery, you need commercial car insurance, commercial property insurance, and commercial liability insurance. Some insurers use these terms interchangeably to refer to the same type of insurance offered to any type of company, regardless of the industry.
Commercial car insurance usually costs more than commercial insurance, as commercial vehicles present greater risks. Some companies are required to purchase a certain amount of commercial insurance coverage and can then add whatever coverage they want beyond that amount. Business interruption insurance compensates a company for lost revenue due to events that interrupt the normal course of business activities. New business owners looking for ways to protect their companies may be confused by the difference between business insurance and commercial insurance.
Small business owners should carefully consider and evaluate their risks, as they may be exposed to personal financial risks in the event of a loss. Depending on the insurance company, this may or may not make a difference in the amount of insurance you pay or the type of coverage you receive. Any small business owner could benefit from commercial business insurance, including independent contractors and freelancers. Business owners must know how to differentiate between business insurance and commercial insurance, as having the wrong insurance can lead to serious litigation.
Personal car insurance is the simplest coverage because it often covers a single person and is not related to work. When there is no consistency in the use of terms between different insurers, it can be quite confusing for those unfamiliar with the field. Commercial use: Commercial use basically refers to the use of the vehicle in the operation of your business. Using multiple drivers for a given vehicle raises the question of whether it should be covered by a commercial, commercial, or personal car insurance policy.
