The two main types of property/casualty insurance policies are personal lines for individuals and commercial lines for businesses. Nearly half of these policies are commercial, which adds stability to the economy by reducing financial risks for businesses. Here's a look at the differences between personal and commercial insurance policies.
One of the most obvious differences between personal and commercial policies is the entity of the policyholder. Personal policies allow for individuals or married couples, while commercial policyholders are defined by business types such as sole proprietors, LLCs, or corporations. It's possible for multiple names to be listed under one policy.
The top concerns for homeowners when it comes to insurance coverage are financial protection for home structures and personal belongings within them. With a commercial organization, top concerns are more complex because they can involve the protection of multiple offices, retail stores, and storage facilities. Commercial property insurance covers structures used for business and physical assets such as equipment used for production.
Personal liability insurance is much more simplified than commercial liability insurance, which has four main areas of coverage obligation. These risks involve the premises, operations, products, and completed operations. The potential for accidents and injuries at a workplace or with using a product presents many risks that a manufacturer must account for.
Businesses have a wider array of coverage options than individuals when it comes to auto insurance. Companies must be selective about who the drivers are and what vehicles can be used for, as commercial auto insurance has specific coverage limitations. Some policies require specific driver’s license types for moving certain items. If your company owns a fleet of vehicles, you can get a discount on a competitive insurance policy through an experienced and connected agent.
Personal insurance forms are fairly simple and often reflective of basic homeowner needs. Commercial forms, by contrast, are typically much more customized to fit the company's unique market niche. An insurance agent who works with various underwriters should become familiar with the various different forms in the insurance industry. It makes life easier for clients.
Are you a homeowner or business owner looking to secure the right insurance? Contact the agents at Humble Insurance Group for more information on how we can guide you through the process of getting precisely the coverage you need.
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