Commercial Insurance vs. Business Insurance: Pros and Cons

The world has changed and everything has a cost associated with it. If you sell something that might not work quite as advertised you may be sued. If somebody has an accident on your property you may be sued. The biggest risk of all is to business owners. They are responsible for the wellbeing of their employees and for any other person who is on their property. They are also responsible for repair to their buildings and any faults with any product that they might have sold. These days owning a business can be risky and the best way to combat that risk is to take out insurance.

Both business and commercial insurance will cover you against certain things but they differ slightly in what you will get cover for. So before you decide between one and the other you need to think about what you require from your insurance policy. Think about the size and scale of your company and what it is that your business actually does. Whether you have just one property or a chain of buildings they will need cover so it may be better to take one policy to insure everything.

If your company runs vehicles you might find that insuring them all on one policy is more beneficial than covering them with individual policies for each vehicle. This also applies to employees, not all businesses have employees; they can be sole trading companies with just the owner working for them. If this is the case then personnel cover obviously wouldn’t be a consideration, however if there are multiple employees then an insurance policy for all of them would be the sensible choice.

Commercial insurance (did you know that the Danish term is erhvervsansvarsforsikring ) is generally a larger policy than business insurance. It covers more things and pays for more potential costs accrued by a multitude of outcomes. It might be an accident to an employee or damage caused by a company vehicle. Vandalism of company property can be a problem which has costs associated with it. Catering firms and restaurants have to think about any problems that might come from illnesses to patrons.
Business insurance tends to be more precise in its cover. If you want a bespoke policy which is custom designed for your business then this could be the right choice for you. This type of insurance policy is probably more suited to smaller companies that do not have many employees or vehicles. Obviously if you don’t have a commercial building then there is not much point in insuring one. Small construction firms or car dealers might work from an office in their residential property and therefore do not need cover for a commercial building.

The best way to determine which insurance is best for you is to work out exactly what you need it for. Make a list of what it is that your firm does and what potential costs may come from your company’s actions. Then research what cover suits your needs and make sure that you shop