The most common types of commercial insurance include; liability, property and workers compensation. In most cases, these policies are used with additional coverage. When it comes to commercial insurance Mississauga business owners need to understand the different types available. Property insurance is meant for coverage of damages to a business. It is used for payment of damages and losses to personal or real property.
Business owners use the property policy to cover losses caused to assets such as damages caused by fires. There are other several additional covers used in line with this policy. They include insurances on; business interruption, law, crime, tenant, inland marine, glass, fidelity bonds, machinery and boilers, builders risk, and debris removal cover. The additional covers are used for specific cases of insurance needs.
Damages to machinery, boilers, and equipment are covered under the boiler and machinery policy. This policy is also used for the coverage of business interruption losses. For example, if an organization lost or damaged some of its machinery like the computer, the management would use the property policy to cover the loss. Another form of commercial policies is the liability type, which covers losses to a third party.
A liability policy would be used to cover lawsuit costs in case a person is sued for personal injuries or property damage. Generally, it caters for the common risks such as damaging business property of even causing an injury to a customer. Its cover encompasses a set of specialized policies. These include; automobile, error and omission, directors and officers, and malpractice liability insurances.
The error and omission type is only used to cover injuries caused to a third party as a result of an inadvertent mistakes or failures. The insurance however does not cater for injuries caused due to poor judgment or an intentional act. For example, if a notary forgot to fill out notarization in the correct way, the error and omission cover would be used to handle any resultant losses. The malpractice policy on the other hand covers for the losses resulting from injuries to a third party when a certain professional approach does not match the specific professional regulations.
The malpractice policy is normally available for dentists, real estate agents, doctors, accountants, and other professionals. Automobile policies are used for the coverage of vans, cars, trailers and trucks used in the business. It is meant for reimbursement of the business owners if his/her vehicles are damaged. This would also include stolen vehicles or injuries to other people and properties by the driver of the company.
Just as the name suggests, directors and officers liability policy is meant for the coverage of directors and officers. It is normally purchased by non-profit organizations and corporations. If the directors or officers of a corporation had lawsuit, this insurance policy would be used to cover all the costs.
The last type of commercial insurance policy is the workers compensation cover, which caters for injuries to the employees. It is recommended that a business with employees should adopt this policy which operates under special regulations. It mainly prohibits legal tussles for less sensitive issues against the employer.
Business owners use the property policy to cover losses caused to assets such as damages caused by fires. There are other several additional covers used in line with this policy. They include insurances on; business interruption, law, crime, tenant, inland marine, glass, fidelity bonds, machinery and boilers, builders risk, and debris removal cover. The additional covers are used for specific cases of insurance needs.
Damages to machinery, boilers, and equipment are covered under the boiler and machinery policy. This policy is also used for the coverage of business interruption losses. For example, if an organization lost or damaged some of its machinery like the computer, the management would use the property policy to cover the loss. Another form of commercial policies is the liability type, which covers losses to a third party.
A liability policy would be used to cover lawsuit costs in case a person is sued for personal injuries or property damage. Generally, it caters for the common risks such as damaging business property of even causing an injury to a customer. Its cover encompasses a set of specialized policies. These include; automobile, error and omission, directors and officers, and malpractice liability insurances.
The error and omission type is only used to cover injuries caused to a third party as a result of an inadvertent mistakes or failures. The insurance however does not cater for injuries caused due to poor judgment or an intentional act. For example, if a notary forgot to fill out notarization in the correct way, the error and omission cover would be used to handle any resultant losses. The malpractice policy on the other hand covers for the losses resulting from injuries to a third party when a certain professional approach does not match the specific professional regulations.
The malpractice policy is normally available for dentists, real estate agents, doctors, accountants, and other professionals. Automobile policies are used for the coverage of vans, cars, trailers and trucks used in the business. It is meant for reimbursement of the business owners if his/her vehicles are damaged. This would also include stolen vehicles or injuries to other people and properties by the driver of the company.
Just as the name suggests, directors and officers liability policy is meant for the coverage of directors and officers. It is normally purchased by non-profit organizations and corporations. If the directors or officers of a corporation had lawsuit, this insurance policy would be used to cover all the costs.
The last type of commercial insurance policy is the workers compensation cover, which caters for injuries to the employees. It is recommended that a business with employees should adopt this policy which operates under special regulations. It mainly prohibits legal tussles for less sensitive issues against the employer.
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