Commercial insurance policies typically come in two types. The first is a liability insurance policy. This type of policy will protect against financial losses caused by another party.
The second main type of commercial insurance is coverage for property, liability, or both. This type of policy will protect against financial losses caused by things such as natural disasters or accidents. For questions, consult Pethel Insurance Group serving the greater Kannapolis, NC community.
What to Look For in a Commercial Insurance Policy
Commercial insurance is purchased by a company or business rather than an individual. A commercial policy typically covers what a standard homeowners’ or auto policy would cover, such as property damage or accidents. But it goes beyond to insure things such as your business, advertising, inventory, and stock.
Commercial insurance is designed to protect businesses against the risk of financial loss due to a covered peril. The most common types of commercial insurance policies include liability insurance, which protects a company against the risk of being sued due to an injury or loss to third parties. Typically, the policies are:
- Unique in that they are not tied to a specific business, industry, product, or a single location. Therefore, there are a number of different types of commercial insurance available, and it is important to know the difference between them.
- Have a shorter duration, typically ranging from one to five years.
- Have a higher deductible, which means you must pay a percentage of the claim before the insurance company is responsible for paying anything.
- Have a maximum claim limit.
- Have a minimum amount of coverage that you must have, which means you can be left without enough coverage to cover the cost if something happens.
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A commercial insurance policies come in different forms and you can purchase them directly from an insurance company or through a broker. First, you should ensure the policy comes from a reputable insurance company.
Second, make sure the coverage you purchase is exactly what you need. For expert assistance in the Kannapolis, NC area, consult Pethel Insurance Group.