You may be wondering what kind of insurance you need to purchase. As a small business owner, you need to have business insurance. Two of the most popular types of business insurance are commercial property insurance and general liability insurance.
This article will attempt to define those kinds of insurance for you. We will also explain the differences between them, and we will discuss if you need one or both of them for your business. Continue reading to learn more about these standard business insurance policies.
- What is general liability insurance?
- What is commercial property insurance?
- What is the difference between commercial property insurance and general liability insurance?
- Do I need both general liability and commercial property insurance?
What is general liability insurance?
General liability insurance is the insurance that protects business owners from claims such as bodily injury or property damage. The claims covered by these kinds of policies are third-party claims. The insurance policy protects your business from the legal and settlement costs resulting from a lawsuit from a third party.
General liability insurance covers injuries or damages that happen in your physical place of business. It’s also what’s needed to protect you if there is damage to someone else’s property in the course of doing business on their property.
If you don’t have general liability insurance and someone makes a claim against you, you’re responsible for paying the claim. Most small businesses don’t have the resources to pay those claims. General liability insurance will pay those claims up to the policy limits. These policies also cover you against claims of copyright infringement or defamation claims.
Learn more at the general liability insurance cost and the best general liability insurance companies
What is commercial property insurance?
Property insurance covers you in the event of loss of land, buildings, or belongings. Your small business might only have a computer and office equipment, but how would you manage if you lost those? Commercial property insurance protects your business from the loss of assets that occur from theft, vandalism, fire, or equipment breakdown.
It’s essential to add loss of business income to your commercial property insurance policy. This coverage pays for lost revenue if you have to close the doors of your business to rebuild for any length of time. Your bills won’t stop just because you’ve suffered a loss but having the right property insurance can help you continue to pay them. Sometimes, insurance companies combine property insurance with casualty insurance.
The things that are covered by your commercial insurance policy depend on your insurer and your individual policy. Some industries may have specialized coverages or may be excluded from some coverages.
When purchasing your commercial property insurance, it’s wise to have a list of all of your inventory. Along with your inventory list, you’ll want to have pictures and receipts, so you can recoup losses if you ever have a claim.
Commercial property insurance isn’t the only kind of property insurance you might need as a small business owner. You should consult your insurance company to discuss the kinds of policies you need to purchase for your business. Remember that whatever policy you choose will have limits, and any claims made must fall within those limits.
Learn more at the best commercial property insurance companies.
What is the difference between commercial property insurance and general liability insurance?
Commercial property insurance covers property. It covers the damages caused by things like fire and vandalism. It’s your protection when something happens to your assets. It doesn’t cover damages to someone else’s property.
General liability insurance covers medical payments for a third party who is hurt on your property. It also covers property damage that occurs to someone else’s property either on your premises or on theirs during your business there. It also covers legal expenses for claims of libel, slander, or theft of advertisements. General liability insurance is only one kind of liability protection that you can purchase as a small business owner.
Do I need both general liability and commercial property insurance?
General liability insurance is the most basic liability insurance a business owner can have. It’s a necessity for anyone who has a business that is open to the public. However, general liability doesn’t cover everything. It doesn’t even cover your property.
To cover your personal property, you need commercial property insurance. Commercial property insurance is designed to protect you when your property is stolen or damaged. When the unforeseen happens, you could lose your livelihood if you aren’t adequately protected.
For your business to be protected fully, you need at least general liability insurance and commercial property insurance. You may need other coverages in addition to general liability and commercial property insurance. These are the basics that you need, though.
Regardless of the coverages you opt to purchase, you need to know your coverage limits. Every insurance policy has limitations. Those limits determine how much your policy will pay on a claim. You could purchase other policies to help cover the gaps left by the limits of your claim.
General liability insurance is the most basic liability insurance a business owner can have. It helps to pay claims made regarding your liability in bodily injury or property damage claims. General liability doesn’t cover everything. There are other forms of liability coverage that you could add to your policies if necessary.
Commercial property insurance is the insurance you need to protect your assets. It helps you replace furniture, equipment, or even property should anything happen to damage or destroy it. This insurance covers in the event of theft, fire, vandalism, and some weather events.
These two forms of insurance are just two of the kinds of insurance you might need as a small business owner. You might need additional coverage like professional liability insurance, business interruption insurance, or a general umbrella policy. Consult with your insurance provider to find the right coverages for you and your business.
It’s nice that you pointed out how general liability insurance could cover injuries or damages that happen in the physical place of business. I was skimming through a guide about business essentials the other day and one of the items it talked about was commercial insurance. Various situations could crop up during operating hours for a business, so having insurance would surely be useful at some point.