How Corporate Insurance Company Works: The Four Steps
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Whether you are new to owning in business or you’ve owned a company for a long time, and you’ve never really paid too much attention to your insurance policy, and you want to understand it then we are going to unfurl all this very quickly through coverages.
Let’s dig right into it what we’re going to learn is the four basic parts of corporate insurance company
1- Liability Coverage
2- Property Coverage
3- Workers Compensation Coverage or Work Comp
4- Commercial Auto Coverage
Liability coverage is coverage for bad things that happen to other people because of you or more of your business. Bad things that happen to other people because of you that could be covered for medical bills or lawsuits associated with injuries to patrons at your place of business. This is the trip and falls, or someone had something bad physically happen they slipped or anything like that those are going to have general liability coverage. It’s separated by how much your insurance company would pay out and any given occurrence. General liability is not for sickness or injuries caused by your product or ceased operations. It’s not for bad advice that you provide to people, and it’s not for damages to your employees. It’s very easy to access where general liability coverage comes. The same will be held while asking for home insurance quotes.
Property coverage is for damage to the physical assets of your business. This could be a lot of different physical assets that your company owns property coverage is what covers them. Therefore, let’s check it out. Building coverage is simply coverage for damage to the building itself. If you own your building or if you have a lease that’s like a triple net lease where you’re responsible for ensuring your building even if you don’t hold it then the building coverage on your policy is incredibly important. The next one is business personal property sometimes referred to as bpp coverage for damage to the inquest equipment furniture and belongings owned by the business. All those kinds of things are covered by business personal property coverage.
Another property coverage is data compromised this is connected with cyber liability often the cyber package liability and data compromiser together but if your hardware or your software is damaged or lost in a cyber attack. Specialized equipment coverage also called inland marine coverage is coverage set up for incredibly valuable or specialized or hard to replace business equipment particularly if you have vintage equipment or things that are just very very specialized for your business.
Workers compensation sometimes called workers comp or work completely for injuries to your own employees’ coverage for injuries to your employees. Meanwhile, there’s a coverage limit that’s generally set up for three separate numbers 100 500 101. Let’s break down what those numbers mean many times that’s confusing, and the first number is the policy limit that most the insurance company pip will pay out for physical injuries to your employees while they’re working pretty simple right.
The second one is for the whole claim the policy limit for sickness caused by the workplace. The third is a per person limit for sickness caused by the workplace. Therefore, you’re going to have a limit per person and then a total limit for the entire claim caused by sickness.
Commercial Auto Coverage
This is coverage for vehicles owned by your business. It could be one vehicle or a hundred vehicles. It could be a car, it could, or it could be all different kinds of the, but apparently, the corporate insurance company is going to cover just the fleet of vehicles that your business owns. There are two parts of this.
The first is an auto liability: This is damage and injuries to others by your vehicle. Therefore, you got an accident, and it was your fault. Another car was smashed, and other people were injured that’s where your commercial auto liability coverage is going to come.
Physical damage coverage: This is simply for damage done to your own vehicle. It usually has deductibles associated with it for comprehensive and collision two different kinds of physical damage that can happen to your cars. Commercial auto is very, so you want to make sure you understand how auto insurance works in your state again. Commercial auto is something that you should follow. Your insurance agent should be explaining to you based on the state laws that you experience.