Commercial Insurance Summary
Commercial insurance is the category of the insurance market that includes insurance providers that offer risk management solutions for business owners that need to purchase business insurance. Business owners agree to pay premiums to the insurer in exchange for guaranteed benefits protection as outlined in the terms and conditions of the insurance agreement. Common commercial insurance solutions include several liability products as well as business property protection.
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Business Property
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Just as homeowners buy insurance that covers the replacement cost and damages of their property, business owners buy protection for their buildings and property. Policies typically cover your business against loss from natural disasters as well as vandalism and criminal mischief. Specific property items covered by commercial property insurance "includes lost income, business interruption, buildings, computers, company papers and money," according to the Business website's overview of "Types of Business Insurance."
General Liability
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General liability insurance covers you for injuries or damage that you cause to a third party. This includes legal defense costs and lawsuit settlements when you are sued by someone injured or suffering property damage while you are conducting business. According to the Find Law website, general liability protection covers your business against common risks it faces when doing business. This includes basic injuries to people while on your premises. More specific types of commercial insurance are available for niche situations and professions.
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Product Liability
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Many organizations in the distribution channel are at risk for injuries or damage caused by products they distribute and sell. This includes manufacturers who make the product, distributors who carry it to the market and retailers who sell it to the consumer market. Product liability protection covers you for losses that occur to others who buy and use your product. This includes legal expenses, medical payments for injuries and coverage for property damage. The amount of protection needed varies based on the risks associated with the products you sell.
Professional Liability
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Professional liability insurance is purchased to protect business owners or practitioners in certain professions. Sometimes distinguished as malpractice insurance and errors and omissions insurance, this general category of business insurance covers you for personal injury or damage that results from negligence, mistakes or errors while you perform professionally. In some states, certain professionals are legally required to carry adequate professional insurance because of their inherent professional risks. Medical professionals, for instance, often must maintain liability insurance to practice.
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References
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