business owners and even new business owners are generally confused
with the meaning of all the different commercial insurance terminology.
So, it is of big help if commercial property insurance and commercial liability insurance can be
differentiated. You really don't need the situation where you purchase
one type of insurance and it doesn't cover what you thought it did.
Commercial property insurance can also be called business buildings insurance and business property insurance. You can have this type of insurance even if you don't own the building. Even if you are renting your business building or you are just working from your home, you can still have your physical assets to be covered by a commercial property insurance policy.
For instance, when disasters happened like your business building was destroyed by fire, water pipes burst in the winter and signs smashed up by storms, your commercial property insurance would be there to pay for the cost of all the damage of your building and all that are inside it such documents, drawings, furniture and equipment, important papers, inventory, landscaping fence, outdoor signs and even the damages to the property of others. Given all these benefits, business property insurance is a sound and solid investment for any business person who is just starting out. As a matter of fact, this is an indispensable investment since any one of the many destructive disasters can easily wipe out your physical assets such as a building or plant and everything that are inside and around them.
Commercial Liability Insurance, on the other hand, protects your business assets against lawsuits that are brought about by allegations of damage to property or injury. Your General Liability Insurance would take charge in paying both the legal costs and the settlement but it does not include punitive damages. The covered liability claim includes property damage, personal injury, bodily injury or advertising injury.
Commercial liability insurance does not cover punitive damages because the law regards them as punishment for an intentional act. However, all other expenses which are the outcome of this lawsuit would be covered by the insurance. It is very important to read carefully the fine print and understand it when you are deciding which of the two commercial insurance policies to take. If you are just a newbie or innocent about business insurance policies, you should take your time in fully understanding and evaluating the coverage that you need for your kind of business.
If you are having a hard time understanding the insurance lingo, raise this concern to your insurance broker or agent and he or she will give clarification to any terms that you can't comprehend. It is their job to ensure that you understand the policy thoroughly. Unfortunately, we are living in a tremendously litigious society where even an apparently harmless mishap can lead to a million dollar lawsuit. Since we are in a lawsuit happy climate, business owners are in need of having ample protection from Commercial Property and Commercial Liability Insurance.