There is a lot of jargon that can get picked up whenever someone spends time with an insurance professional. Commercial insurance is absolutely essential for your business as a business owner. Unfortunately, it can be hard to understand what exactly your policy includes with all the industry-specific terms. Though the terms used in commercial insurance can feel pages of books, we at InsureWise would like to share a few of the more common commercial insurance terms to help you better understand. .
Commercial Insurance Terms
1) Actual Cash Value: Actual cash value is the value of an item minus depreciation, in basic terms. It is being assessed based on the price it would currently fetch rather than the price you paid for it, but all it really means is that when the worth of an item is being assessed by the actual cash value though might sound rather complicated.
2) Business Interruption Insurance: If in the event that a disaster occurs that makes it impossible for you to continue to do business, this is an insurance coverage option that makes it possible for a company to receive financial relief.
3) Premium: In order to be covered by an insurance policy, your premium is the amount of money that you pay.
4) Deductible: Before you can cash out on the benefits of your policy, the deductible is the money that you’re expected to pay.
5) Commercial General Liability: Because it provides coverage against claims of bodily injury and property damage that have been suffered by a third party, this is most commonly associated with slip and fall accidents. For litigation and lawsuit-related expenses, this policy will cover you.
6) Replacement Value: Your insurance will cover the cheaper option if you see replacement value listed in your policy, it means that given the choice between repairing or buying a replacement item.
7) Specified Perils: Basically, this is a type of insurance coverage where the only causes of loss you are covered from are the ones that are specifically named in your policy.
8) Open Perils: As long as the cause of loss is not excluded, it is covered is the general rule of thumb since this insurance covers you against everything except for what is named in your policy.
9) Insurance Limits: The maximum dollar amount that your insurer will allow you to claim is the limit of a policy as insurance coverage is not infinite.
10) Commercial Property Insurance: No matter if that is inventory, computers, or equipment, among other items, this an insurance type that covers the cost of repairing or replacing property in the aftermath of a covered loss.
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We hope this helps you better navigate you through your insurance policy or better helps you understand what is included as you search the different coverages to tailor your specific insurance policy. With the help of InsureWise, you can have the confidence that we will help you find the coverage that is necessary, from what is required in your line of work, to what is expected to have from customers, as well as ideal insurance that maximizes your coverage within your budget. Call InsureWise today to get started or submit this quick and easy online quote form!