Commercial insurance can sometimes be confusing due to the multitude of terms and jargon used within the industry. Understanding these terms can help make informed decisions about coverage your business needs. Here are some common commercial insurance terms to help you better understand your policy and ensure your business is protected.
1. Premium
A premium is the amount you pay for your insurance policy. Some insurance companies provide flexible options to pay annually, quarterly, or monthly. The premium is determined based on various factors such as the type of coverage, size of the business, and your claims history.
2. Deductible
The deductible is the amount you are required to pay out-of-pocket for a claim and your insurance coverage covers the remaining amount.
3. Policy Limit
A policy limit is the maximum amount an insurance company will pay for a covered loss. You’re responsible for any expenses that exceed the limit.
4. General Liability Insurance
General liability insurance can help cover your business against claims of property damage, bodily injury, or personal injury caused by your business operations, services, or even products.
5. Commercial Property Insurance
Commercial property insurance can help to cover damage to your business property, which can include equipment, inventory, and furniture, due to events such as theft, fire, vandalism and certain other disasters.
6. Business Interruption Insurance
Business interruption insurance can help cover the loss of income a business suffers after a disaster. This type of insurance can help cover operating expenses including rent, payroll, and utilities while the business is temporarily closed.
7. Directors and Officers (D&O) Insurance
D&O insurance can help to protect assets of corporate directors and officers, as well as the company itself, from claims of wrongful acts, such as breach of duty, negligence, as well as mismanagement. It’s an important insurance for businesses to consider with a board of directors.
8. Cyber Liability Insurance
Cyber liability insurance can help to cover the costs associated with data breaches or other cyber incidents. If your business has an online presence, engages in e-commerce, or handles sensitive customer data, cyber insurance is important to consider.
Understanding these common insurance terms can help you make more informed decisions when it comes to your business insurance needs. For more information about these key terms, or to see other business insurance options, visit our business insurance page and receive your free quote today.
At Sutherland Insurance, we’re here to help you find the right coverage for your business. Contact us today to learn more about our comprehensive insurance solutions and how we can help protect your business from unexpected risks.
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