Perks of Commercial Insurance
Commercial insurance comes with many perks, the main one being having peace of mind knowing your business is protected when disaster strikes. Whether a data breach exposes customer information or a product fails unexpectedly, leading to lawsuits, having commercial insurance coverage is invaluable.
While some types of commercial insurance policies may seem to cover similar losses, each one is tailored to meet a different need. Business interruption insurance is often confused with commercial property insurance. But do they cover the same things?
The short answer is no. The two are unique products that each protect your organization in crucial ways.
Business Interruption vs. Commercial Property Insurance
Let’s take a look at how business interruption and commercial property insurance differ and why they are both so important.
Business Interruption Insurance
Similar to commercial property insurance, business interruption coverage comes into play when an event such as a fire, flooding, or vandalism causes the organization to stop operations. Rather than covering the cost of property damage, business interruption insurance pays lost wages and revenue, taxes, loan payments, and other temporary operating expenses.
Commercial Property Insurance
Although triggered by events similar to business interruption insurance, commercial property policies are designed to cover the costs of the damaged property. Repair or replacement of buildings, furnishings, and equipment all fall under the owner’s commercial property insurance policy.
Do You Need Both?
Your trusted insurance advisor can help you identify exactly which policies you need, however, it typically is best to have both business interruption and commercial property insurance. With each covering your company in unique ways, your organization will stay more protected with both policies in place.
If you have any questions about commercial insurance, please contact Steve Longenecker (303-808-9351 x2) at Mountain Insurance: Longmont.
We give out $25 gift cards for referrals that become our insurance clients.
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