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.
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 policy covers inadvertent failures or mistakes that cause injuries to third parties, and therefore must not be used for the coverage of intentional act or poor judgment.For example, an error and omission policy would cover damages caused by a notary forgetting to fill out notarization in the correct manner. Malpractice cover on the other hand is used for the payment of losses caused by injuries to a third party when the conduct of a professional fails to meet the standard requirements of the profession.
The malpractice policy is commonly used by the accountants, doctors, dentists, and other professionals. Automobile cover on the other hand deals with vehicular properties of the organization. Particularly, it caters for the losses caused by the trailers, cars, vans, and trucks of the organization. In case any of these got damaged or stolen, the cover would be used to repay the business owner. This policy also extends to covering losses and injuries caused to others by the company vehicle.
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.
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 policy covers inadvertent failures or mistakes that cause injuries to third parties, and therefore must not be used for the coverage of intentional act or poor judgment.For example, an error and omission policy would cover damages caused by a notary forgetting to fill out notarization in the correct manner. Malpractice cover on the other hand is used for the payment of losses caused by injuries to a third party when the conduct of a professional fails to meet the standard requirements of the profession.
The malpractice policy is commonly used by the accountants, doctors, dentists, and other professionals. Automobile cover on the other hand deals with vehicular properties of the organization. Particularly, it caters for the losses caused by the trailers, cars, vans, and trucks of the organization. In case any of these got damaged or stolen, the cover would be used to repay the business owner. This policy also extends to covering losses and injuries caused to others by the company vehicle.
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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