Insurance terms can be difficult to understand, and when it comes to protecting your business, it’s vital that you have a clear view of what your coverage entails. Getting to know the meaning behind some of the common terms used in commercial insurance is the best way to make shopping for your business policies simpler.
The definitions below provide a basic guide to the world of commercial insurance:
– General Liability: this is a liability insurance policy that covers a wide range of (but not all) potential liability risks. General liability is designed to provide for court costs associated with a lawsuit and to cover damages against your company if you are proven negligent.
– Professional Liability: this is a term for a variety of types of liability designed to defend professionals against negligence and errors made in the process of performing their duties. Errors & Omissions and Malpractice are two common forms of professional liability coverage.
– Personal Injury: this covers injury that is not physical, but instead a result of libel, slander, or any defamation of another person which your company is be held accountable.
– Advertising Injury: this is another type of injury that covers damage or injury to the reputation of another company as a result of advertising claims or statements from your company.
– Product Liability: this coverage provides for damages that occur as a result of a product your company produces, either by faulty manufacturing or unintentional errors.
– Premises Liability: this refers to negligence claims from occurrences on your premises or place of business.
– Employment Practices Liability: this refers to coverage for any of the possible ways a business could be held responsible for actions taken in the name of hiring, terminating, or daily management of employees. It can include things like discrimination, wrongful termination and sexual harassment.