Business insurance coverage is a vital necessity for every business. Many financial investors and lenders may require you to have this coverage before doing business with you, and the protection that it offers makes it a wise investment in the future of your company. Read on to learn some valuable facts about property and casualty insurance that will help you when you're shopping for your commercial coverage.
Two Types of Property and Casualty Insurance
Property and casualty insurance can be divided into two categories. Personal lines may be the most familiar to individuals, as this is the type of property and casualty insurance that is a part of auto or homeowner's insurance. The other kind, commercial lines, accounts for nearly half of the property and casualty insurance industry. Commercial lines include the many different insurance coverages designed to protect businesses.
Commercial Property & Casualty Coverage
Though they are generally packaged together, commercial property and casualty insurance are separate insurances that cover different things. Commercial Property & Casualty protects your company's property, buildings and the contents of those buildings from theft, accidents, and other potential losses. The policy may cover the replacement cost for those items, or it may provide a cash value for the items when they are lost. The type of reimbursement in the policy will determine what your insurance premiums will be.
Commercial Casualty Insurance Coverage
Commercial casualty insurance, also known as commercial liability , provides your business with protection against legal actions. These legal actions may include lawsuits filed for an injury, for negligence involving your business or for property damage caused by your business or employees. Casualty insurance will protect your business if a customer is injured on your property, and many financial lenders and investors will require you to have this important insurance protection. Casualty insurance coverage will have a limit, but it will cover a variety of expenses, including medical bills, legal expenses and financial settlements up to that limit.
Property and Casualty Insurance and the World Economy
Commercial insurance plays an important role in the proper function of the world economy . In fact, without commercial insurance, including property and casualty, the economy would effectively shut down. Through their business insurance policies, insurance companies assume the risks that are always present when goods and services are produced and provided. By doing this, they relieve economic and legal pressure on the businesses, allowing them to thrive and power the economy.
Additional Types of Coverage That May Be Added
In addition to the protection offered by commercial property and casualty insurance, you may choose to add additional business insurance coverages that suit your business needs. Business income insurance, or business interruption insurance, will cover the cost of replacing your lost revenue and any extra expenses if your business has to shut down after an accident or incident occurs. It may also be valuable if your business is required to relocate while repairs are made.
Commercial umbrella liability enhances your existing liability coverage, filling in many of the gaps and generally broadening the coverage. Employment practices liability is a valuable protection for your business, insuring against the costs that will arise if an employee disputes their termination from the company, or if they file a discrimination or harassment lawsuit.
Some other types of insurance that cover professional liability, supply chain risks, and even terrorism may also be added to your commercial property and casualty insurance policy.
When you understand the function and value of property and casualty insurance, it is easy to see why this type of business insurance is so important. After evaluating your business needs, you can work with your insurance broker to customize a policy protecting you, your business and your customers from harm.
Poms & Associates offers a broad range of business insurance and brokerage services and provides the most current information on commercial property and casualty insurance policies, as well as the many add-ons available. For more details about the basics of business insurance policies, and to find out how Poms & Associates can help you choose the right property and casualty coverage for your company, please visit our website or contact us.