Are Business & Commercial Insurance the Same Thing?

Being a first-time business owner involves a learning curve. Depending upon the industry your business is in, you may need to worry about whether or not you have the appropriate licenses to operate. All business owners also need to make sure they have the right insurance coverage to maintain their financial security in the case of an unforeseen event. Asking whether or not there’s a difference between commercial and business insurance is a good sign you’re handling all of your company’s concerns properly, and you can use this guide to identify what types of coverage you need.

Understand How Insurance Companies Use the Terms

For the most part, you’ll find insurance companies will often use the terms “commercial insurance” and “business insurance” interchangeably. The use of either phrase doesn’t typically have anything to do with the type of business you run or its size. However, the use of specific words can sometimes describe small differences when it comes to auto insurance coverage.

Learn How Commercial & Business Auto Insurance Work

With auto insurance coverage, the insurance company may use the term “business use” to describe using the vehicle for activities that are required during the normal course of doing business. For instance, your policy may list your vehicle as being used for business purposes if a salesperson regularly drives it to field appointments. A vehicle you or your employee uses to meet clients at a different location might also fall under this category.

“Commercial use” usually refers to using a car or truck to transport goods or provide services. An example of this would be a construction worker who uses his or her truck to take tools or other equipment to a job site. Delivery workers also typically have vehicles that fall under the category of commercial use.

Know the Difference between Commercial Property & Business Liability Insurance

You’ll also come across these two different types of insurance. Commercial property insurance covers a company’s physical assets. This can include the building your company operates out of along with equipment and inventory. You’ll want this insurance to cover the losses you might experience after a fire or theft. Business liability insurance covers damages that occur due to things that happen in conjunction with your company’s operations, such as injuries that occur as a result of an accident.

Ask about Any Policy Information You Don’t Fully Understand

Even when you understand the terminology, figuring out what types of insurance your company needs can get confusing. Every company has unique risks and concerns that make it difficult to create a one-size-fits-all policy. The one thing you can know for sure is that you don’t want to be lacking an important type of coverage if an unforeseen event occurs. Talking to a commercial insurance agent is the best way to make sure your company is fully covered if the worst should happen.

For affordable, reliable commercial insurance as well as homeowners, renters, motorcycle, and auto insurance National City, call on the trustworthy professionals at Altra Insurance Services. Reach out to us today at (800) 719-9972 to learn how we can satisfy all your insurance needs.