The most common types of commercial insurance include; liability, property and workers compensation. In most cases, these policies are used with additional coverage. When it comes to commercial insurance Mississauga business owners need to understand the different types available. Property insurance is meant for coverage of damages to a business. It is used for payment of damages and losses to personal or real property.
The property type can be used to cover fire damage to a business office. It also has coverage for several business properties. These include insurances on; boilers, machinery, debris removal, builders risks, glasses, inland marine, business interruption, law, tenants, crime, and fidelity bonds. All these insurances deal with different aspects of damages and losses that may affect the business or property of an individual.
The boiler and machinery cover is used for payment of damages to boilers, equipment and machinery. Besides covering damages to properties, it also used to cater for business interruption loses. For instance, if there was a huge loss or damage to the computers of an organization, the property cover would be used to handle it. On the other hand, the liability cover is used to cater for losses caused to third parties.
If a person is sued for personal injuries or property damage, the cost of settling the suit would be covered through the liability policy. Generally, a liability policy covers a person from common risks like injuries to the customer on the premise. There are several specialized types of liability insurances. They include insurances on; errors and omission, malpractice, automobiles, as well as directors and officers liability cover.
The error and omission policy covers inadvertent failures or mistakes that cause injuries to third parties, and therefore must not be used for the coverage of intentional act or poor judgment.For example, an error and omission policy would cover damages caused by a notary forgetting to fill out notarization in the correct manner. Malpractice cover on the other hand is used for the payment of losses caused by injuries to a third party when the conduct of a professional fails to meet the standard requirements of the profession.
The malpractice policy is normally available for dentists, real estate agents, doctors, accountants, and other professionals. Automobile policies are used for the coverage of vans, cars, trailers and trucks used in the business. It is meant for reimbursement of the business owners if his/her vehicles are damaged. This would also include stolen vehicles or injuries to other people and properties by the driver of the company.
Just as the name suggests, directors and officers liability policy is meant for the coverage of directors and officers. It is normally purchased by non-profit organizations and corporations. If the directors or officers of a corporation had lawsuit, this insurance policy would be used to cover all the costs.
In a business set up, workers compensation insurance policy enhances the payment of the on-the-job injuries to the employees. It is required by various statutory laws that a business with employees should have this policy. Usually, the cover operates under certain regulations. It prohibits employees from bringing lawsuits against employees for injuries related to their works.
The property type can be used to cover fire damage to a business office. It also has coverage for several business properties. These include insurances on; boilers, machinery, debris removal, builders risks, glasses, inland marine, business interruption, law, tenants, crime, and fidelity bonds. All these insurances deal with different aspects of damages and losses that may affect the business or property of an individual.
The boiler and machinery cover is used for payment of damages to boilers, equipment and machinery. Besides covering damages to properties, it also used to cater for business interruption loses. For instance, if there was a huge loss or damage to the computers of an organization, the property cover would be used to handle it. On the other hand, the liability cover is used to cater for losses caused to third parties.
If a person is sued for personal injuries or property damage, the cost of settling the suit would be covered through the liability policy. Generally, a liability policy covers a person from common risks like injuries to the customer on the premise. There are several specialized types of liability insurances. They include insurances on; errors and omission, malpractice, automobiles, as well as directors and officers liability cover.
The error and omission policy covers inadvertent failures or mistakes that cause injuries to third parties, and therefore must not be used for the coverage of intentional act or poor judgment.For example, an error and omission policy would cover damages caused by a notary forgetting to fill out notarization in the correct manner. Malpractice cover on the other hand is used for the payment of losses caused by injuries to a third party when the conduct of a professional fails to meet the standard requirements of the profession.
The malpractice policy is normally available for dentists, real estate agents, doctors, accountants, and other professionals. Automobile policies are used for the coverage of vans, cars, trailers and trucks used in the business. It is meant for reimbursement of the business owners if his/her vehicles are damaged. This would also include stolen vehicles or injuries to other people and properties by the driver of the company.
Just as the name suggests, directors and officers liability policy is meant for the coverage of directors and officers. It is normally purchased by non-profit organizations and corporations. If the directors or officers of a corporation had lawsuit, this insurance policy would be used to cover all the costs.
In a business set up, workers compensation insurance policy enhances the payment of the on-the-job injuries to the employees. It is required by various statutory laws that a business with employees should have this policy. Usually, the cover operates under certain regulations. It prohibits employees from bringing lawsuits against employees for injuries related to their works.
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