Commercial insurance is a broad term that covers a lot. However, to put it in the simplest form, commercial insurance is a type of insurance meant to protect businesses against losses from injury to employees and damage to facilities/properties. Since businesses and their processes vary widely, commercial insurance protects different organizations from different types of risks.
However, according to the Shay Agency, whose serving city is Wilkes-Barre, PA, despite the variances, all commercial insurance policies have some typical coverage, which are:
- Public liability
- Professional indemnity
- Employers’ liability
Public Liability
This aspect of commercial insurance protects businesses that receive visitors to their premises or work on client locations. If suppliers, clients, of members of the public suffer property damage or personal injury caused by the policyholder’s business, public liability insurance will cover the legal expenses and compensations.
For example, if you have a painting company and while one of your painters is painting the exterior of a building, his brush drops on the windshield of a Ferrari and breaks it. This insurance policy will bear most of the claim settlement costs.
Professional indemnity
If your business causes a client some financial losses or professional losses, this insurance policy will cover the payment of compensation and legal fees. Here are some examples of how your business can cause losses to your clients:
- You inadvertently publish a reputation-damaging statement about someone or an organization that happens to be false.
- A client’s data or document gets lost in your care/custody.
- You mistakenly share someone’s sensitive or confidential information without the person’s express permission.
- You violate someone’s or an organization’s copyright.
- A client incurs a loss because he acted on your wrong or misleading advice.
Employers’ liability
This policy will cover your legal fees and compensation if your existing or former employee files a lawsuit against your company because of an injury or illness caused by your work.
For more information, contact The Shay Agency in Wilkes-Barre, PA.