Business owners may find it difficult to find the right commercial insurance policy if they’re not familiar with the terminology.
The following are six important insurance terms to understand if you’re looking for the right insurance policy for your small business:
Actual cash value
The actual cash value of any possession of a company is the amount necessary to replace it when it was first purchased minus any depreciation that possession has experienced over time. Figuring out what the actual cash value of all a company’s assets are important in determining how much coverage that company needs.
Professional liability coverage
Those practicing certain professions like medicine are subject to possible malpractice suits when they are accused of professional errors. Having malpractice insurance is important to cover the costs of such suits for companies operating in affected industries.
Named peril
A named peril is a certain liability a company operating in a particular industry might face that may not be covered under a general commercial policy. It’s important for a business owner to pinpoint liabilities unique to their industry and have those liabilities covered as named perils.
General liability
General liability coverage is a policy that will protect companies from most types of claims involving either property damage or personal injuries.
Certificate of insurance
A certificate of insurance verifies that a small business has commercial insurance coverage. A certificate of insurance may be important for a small business owner that is seeking financing.
Business interruption insurance
Business interruption insurance is a commercial policy feature that will compensate a company for lost profits due to periods of commercial inactivity.
You can learn more about commercial insurance needs by contacting The Insurance Shop USA regarding your Sandpoint, ID business operations.
