Commercial liability insurance is the insurance cover for the business. It is the most important investment to make by every business man. It provides guaranteed security against theft, property damage or injuries to the employees or working staff and for interruption in the businesses. Usually there are three common types of business insurance. They are property, workers compensation and commercial liability insurance. They are described in detail as follows-
Property insurance
It is the insurance that compensates for any damage to the personal or business property. It includes the coverage as listed below-
- Boiler and machinery insurance – It is the business insurance that provides coverage in case if the machinery, boilers or other equipment suffer breakdown. In short it will also provide compensation for the fire damage to computers.
- Builder’s risk insurance – It is the insurance cover for the damage to buildings during the time of their construction.
- Inland marine – This is the insurance for property damage during the transit or other’s property that is on personal premises.
- Business interruption – It covers the income and expenses which result from the property damage due to fire. This means if some damage to the business property lead to interruption in the business for some time period then loss suffered is compensated by this insurance policy.
- Insurance of tenants - This is the business insurance that compensates for the repairs to be made for the rental area. It also includes the damages that result due to any damage caused by employees on the rented room.
- Crime insurance – It covers burglary, theft, money, security and stock robbery and fixtures.
- Other insurance covered under this type is glass and law insurance.
Worker’s compensation
Commercial liability insurance is for the businesses in which the employees get injured during working hours or meet with some other accident and even death. The company then provides medical expenses including ambulance fees also. As per laws of worker’s compensation it prohibits the employees to file a lawsuit. It provides compensation and satisfies the employer and employees both.
Liability insurance
This is the insurance that provides compensation against injuries caused to third party. Some of the most specialized liability insurance coverage are-
- Errors and omission- The insurance covers failures and unintentional mistakes or injury done to the third party person.
- Malpractice insurance- It isthe coverage when a professional conducts a mistake that is below the standard set by other professionals. If a doctor makes mistake that other doctors’ would not have done under same situation then malpractice insurance policy would provide cover. It is for the doctors, accountants, real estate agents, dentists and architects.
- Coverage for automobiles- This is the coverage provided for vehicles damage which are used for business such as cars, vans, trucks and trailers. The examples include if the vehicle gets stolen or damaged or even in case of injury to the driver.
Directors and officers liability insurance- This is the insurance that compensates for lawsuits against the officers or directors of the nonprofit and profit organizations.
