Commercial vs. Business Insurance: Spot the Differences

While the terms commercial and business insurance can be used interchangeably, there are distinct differences that you need to know if you want to learn more about the two types of policies.
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The next paragraphs will discuss the main differences that exist for each policy. Continue reading to learn more.

1. Product vs. Personnel Protection
First, commercial insurance has to do with the protection that the company needs specifically. For example, if you are a restaurant owner that uses any vehicle for delivery, you would need to have a commercial auto insurance policy.

In this case, commercial refers to how your business establishment operates. For example, a restaurant functions as a public utility by serving and delivering food and related products to the customer’s doorstep. Commercial vehicles, therefore, are used to transport products from one restaurant to another location. Commercial insurance applies to the function of the car and the products transported.

An automobile reserved for business use usually transfers personnel from one place to another for meetings and any related event. In this regard, you would only need a business auto insurance policy for your company car.

2. Employee vs. Equipment Protection
As for liability, business liability refers to any accidents that occur within company premises. If your employees get injured at work, business liability insurance will take care of the hospitalization and medical needs.

There are also several types of liability insurance policies that you can get for your employees. However, that would be reserved for another discussion entirely.

Commercial Property Insurance, on the other hand, protects your company equipment from damage. Your insurance company will cover the repair or replacement costs if your property gets damaged due to the accident mentioned above.

These are the two distinct differences between business and commercial insurance—the former deals with the human aspect of insurance policies within the industry. The latter has to do with protecting the mechanical tools that you use for business operations.

Conclusion
Knowing these distinct differences will help you understand which policy to take if ever you are going to start a business platform of your own. Don’t hesitate to contact your local insurance agent for more information in the future.

At Kapasu Insurance Services Inc, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (760) 995-3853 or Click Here to request a free quote.