Business Insurance vs. Commercial Insurance: Which Do I Need?
Individuals typically carry automobile insurance, homeowners/renters insurance, health insurance, and life insurance to protect them in the event of an accident or other crisis. Business owners also require insurance to protect their business from losses should someone be injured on their premises, should their property be damaged, or should the business suffer certain financial losses.
When it comes to choosing the right insurance for their business, owners often have questions regarding business insurance vs. commercial insurance. Here, business insurance lawyers from the Tawwater Law Firm, in Oklahoma City, OK, go over important areas of commercial insurance that could prove invaluable to business owners.
Are Business and Commercial Insurance the Same Thing?
When new business owners are looking into insurance options for their company, they are often confused to find that some insurers offer “commercial” insurance, while others refer to “business” insurance. Although commercial insurance and business insurance may sound like two different things, the terms are often used interchangeably. Both business and commercial insurance are general terms that are used to describe types of insurance that are beneficial to owners of small and large businesses alike. Two of the most common types of business (or commercial insurance) are commercial property insurance and business liability insurance.
Commercial Property Insurance
Commercial property insurance covers damages to a business’s property and physical assets. Depending on the type of assets a company has, commercial property insurance may provide coverage for a building, company equipment, and/or business inventory. Commercial property insurance would repair or replace these items in the event that they were stolen, vandalized, or damaged by fire, explosions, burst water pipes, etc. Commercial property insurance does not usually provide coverage for damage caused by events like an earthquake or flooding, though additional coverage can often be added to a policy.
Business Liability Insurance
Business liability insurance, also referred to as general liability insurance, covers actual business operations. Essentially, it protects a business from losses if the business is found liable for any incident that causes bodily or property damage. Business liability insurance can cover:
- The cost of property damage claims made against the business
- Medical expenses for individuals injured on the business’s property
- Administrative costs to handle liability claims
- Court costs and any judgements or settlements for property or bodily injury claims
The specific type of liability insurance required for each company depends on the type of business, so it is essential that business owners meet with an insurance agent or insurance lawyer to ensure that they have proper coverage.
What if I’m Properly Insured but My Claim Is Denied?
Business and commercial insurance are meant to protect business owners from losses. Unfortunately, even when a business has proper insurance coverage, it is not unheard of for an insurance claim to be denied. If a legitimate business insurance claim is denied or underpaid, business owners in the Oklahoma City area can work with our business insurance lawyers to hold the insurer accountable for the claim.
Contact Tawwater Law Firm
If you have questions about the type of business insurance needed to protect your company, or are interested in taking legal action after a commercial insurance claim has been denied, the lawyers at the Tawwater Law Firm would be happy to help. To schedule a personal consultation at our Oklahoma City law firm, send us a message online, or call (405) 607-1400.