Commercial Lines insurance is a means of providing support for businesses and organizations. Companies obtain property insurance, workers compensation, automobile insurance, liability insurance and a mixture of other policies created to protect the assets of the organization in case of an unforeseen loss. Separate insurance policies cover vehicles, professional services, and employee health and disability needs.
Types of Commercial Lines Insurance
The two basic varieties of insurance are liability and property. Property insurance incorporates damages to or loss of the property. For instance, somebody can sue for damages that were caused by you or your possessions. The cost of the lawsuit, including defending it and settling it if necessary, are covered by your insurance.
Business Owner’s Policy
Mid-size corporations frequently obtain a combination Commercial Lines insurance policy referred to as a Business Owner’s Policy (BOP). Coverage for this type of insurance protects buildings and contents owned by the company. It also provides liability protection to cover legal responsibility for the harm that it may cause to others. The two different forms, standard and special, provide extra comprehensive coverage.
A fundamental alternative to BOP is Business Interruption insurance, which is a classification of property insurance for loss of income resulting from a fire or other catastrophe that disrupts operations. It can also absorb the added expense of operating out of a temporary location. Costs related to business interruption can exceed the property damage that caused the company to shut down.