Insurance is an important aspect of our lives and financial health that should not be overlooked. However, some may put it off because of the many challenges they may face along the way as they work feverishly to find the best policies for themselves and even their business.
When navigating your insurance options, it is good to have a clear understanding of the differences between personal and commercial insurance so that you can find the right coverage options.
Below, you will find some of the key differences between these two insurance types.
The Name of the Insured
On personal insurance policies, the Named Insured is going to be an individual or a married couple. When you look at a business policy, you will find different entity types, including sole proprietor, partnership, limited liability corporation, corporation, and more.
There can be multiple Named Insureds on one single commercial insurance policy, depending on the ownership. This is not going to be the case with a personal insurance policy.
Concerns Regarding Property
Personal policies usually offer coverage for consumers that covers their home and its contents. Under a commercial policy, it can include a number of different building types, and the coverage for the contents contained within these buildings can include their inventory, equipment, furniture, and machinery.
Concerns Regarding Liability
Another big difference between these two insurance types is a liability. A commercial consumer will have much larger concerns than those of a consumer with only a personal insurance policy.
With commercial insurance, you have to see how the building operates, what the risk of exposure is, and the claim potential. Each business has its own unique performance indicators, so it is important to understand liability insurance for business and the claims process.
When it comes to auto insurance, we all have different needs; this is especially true of a business. When finding a commercial auto insurance policy, you need to determine who all the drivers are and understand what the vehicles will be used for. The vehicle use and driver variance are much greater for a commercial policy than a personal insurance policy.
For commercial insurance, a driver may even require a special license depending on the size of the vehicle being used and what it is hauling. You don't run into these issues with personal auto insurance.
Finally, there is also going to be a difference between the policy forms being used for both insurance types. These forms can also vary drastically between different insurance companies as well. Because of these differences, it definitely does help to have an experienced insurance agent on your side to help you navigate the insurance process.
They are familiar with the differences between insurance carriers and insurance types and can help explain the underwriting process and find the best way to serve you and help you find the insurance policy you need with the right coverage amount; whether it is a personal policy or a commercial policy for your business.
For more information on how you can be helped, contact the insurance experts at Panorama today.