What is Commercial Liability Insurance?
Commercial liability insurance is a type of coverage purchased by business owners to protect themselves against assumed risk and to mitigate their liabilities in relation to their business operation. Commercial general liability insurance is purchased by a business owner to cover any visible or possible liability that may be already covered; when a business or commercial establishment purchases an insurance policy to protect their liabilities, they are effectively obtaining a form of commercial liability insurance.
For any commercial business or firm, the obtainment of commercial liability insurance will provide reimbursement for part of or the entire amount of damages caused by the company’s liabilities that may have been imposed due to the company’s activity or by law.
In addition, commercial liability insurance also has the potential to provide compensation for the cost of legal assistance in a situation where claims are filed against the business. An adequate commercial general liability insurance policy is a must-have resource to avoid the potential pitfalls incurred by a corporation; without the obtainment of commercial liability insurance, the business itself would be forced to bear the costs associated with damages.
Types of Commercial General Liability Insurance:
A potential business owner has a plethora of options when applying for commercial general liability insurance. That being said, it is the particular insurance company that, through their underwriting process, will determine if the particular business or commercial enterprise is eligible to purchase a commercial liability insurance policy. Additionally, the issuing insurance agency will decide how much policy will be awarded and what liabilities will be protected.
Each insurance company will institute a classification process to be placed on the underlying businesses; any new application for commercial general liability insurance will fall under one of the predetermined categories. This process entails that even if a commercial enterprise possesses a clean record in regards to insurance filings, they still may be required to pay a high premium for the commercial liability insurance.
Purchasing Commercial Liability Insurance:
When purchasing commercial liability insurance it is imperative to contact several liability insurance agents or companies before deciding on a particular policy. Additionally, the commercial firm must also understand what is covered in the particular plan and what types of liabilities are being protected. In most instances, an independent agent can be reliable and valuable source to provide comparisons on different commercial liability insurance policies that are presently available.
With this in mind, it is also crucial to analyze the qualifications or credentials of the underlying commercial liability insurance company as well as the corresponding agent; all agents and companies must be properly licensed to offer such products.