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.
The latter would be used to cover losses caused by a fire breakdown in a business office. Property insurance encompasses several other additional coverage. Examples include; debris removal, law, boiler and machinery, business interruption, inland marine, fidelity bonds, crime, builder risk, glass, and tenant insurances. These covers are used for various aspects of losses and damages caused to insured properties.
The boiler and machinery insurance provides coverage for the breakdown of machinery, boilers and equipment. This type of cover is used for reimbursement of property damage and business interruption losses. For example, it would be used in case of fire damage to computers of the organization. Liability cover, on the other hand, covers damages to third parties.
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.
Workers compensation insurance policy covers losses resulting from the employees on-the-job injuries. Virtually, all nations require that this insurance should be used by any business having employees.Unlike the other forms of commercial insurances, this type works under special laws. It prohibits negligence lawsuits against employers for injuries to the employees.
The latter would be used to cover losses caused by a fire breakdown in a business office. Property insurance encompasses several other additional coverage. Examples include; debris removal, law, boiler and machinery, business interruption, inland marine, fidelity bonds, crime, builder risk, glass, and tenant insurances. These covers are used for various aspects of losses and damages caused to insured properties.
The boiler and machinery insurance provides coverage for the breakdown of machinery, boilers and equipment. This type of cover is used for reimbursement of property damage and business interruption losses. For example, it would be used in case of fire damage to computers of the organization. Liability cover, on the other hand, covers damages to third parties.
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.
Workers compensation insurance policy covers losses resulting from the employees on-the-job injuries. Virtually, all nations require that this insurance should be used by any business having employees.Unlike the other forms of commercial insurances, this type works under special laws. It prohibits negligence lawsuits against employers for injuries to the employees.
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