Commercial Property Insurance Vs. Liability Insurance

To say that insurance is confusing is an understatement. Not only are there words that sound strange that you need to be familiar with, but the details change, too, depending on the particular policy and the insurance company. For instance, how is commercial property insurance different from liability insurance?

Here, we’ll answer just that. Let’s learn about these two types of commercial insurance in detail:

What Is Commercial Property Insurance?

Commercial property insurance is a type of insurance that helps protect businesses and their property from loss or damage. This can include things like buildings, equipment, inventory, and other business-related assets. Commercial property insurance can help cover the cost of repairs or replacement if these things are damaged or destroyed. It can also help cover the cost of lost income if a business is forced to close due to damage to its property.

What Is Commercial Liability Insurance?

Commercial liability insurance is a type of insurance that provides protection for businesses against claims arising from injuries or damages that occur as a result of business operations. This type of insurance can help to protect a business’ financial interests in the event that it is sued for damages caused by its products or services. Commercial liability insurance can also help to cover the costs of legal defense in the event that a business is sued.

How Is Commercial Property Insurance Different from Commercial Liability Insurance?

Commercial property insurance protects your business’s physical assets, such as buildings, equipment, inventory, and furniture. Commercial liability insurance, on the other hand, protects your business from legal liability for injuries or damages that occur as a result of your business operations.

There are a few key ways in which commercial property insurance and commercial liability insurance differ:

Coverage Limits

Commercial property insurance typically has higher coverage limits than commercial liability insurance. This is because the value of your business’s physical assets is usually much higher than the value of your business’s liability coverage.

Policy Limits

Commercial property insurance typically has lower policy limits than commercial liability insurance. This is because the risk of loss is usually much higher for physical assets than for liability coverage.

Deductibles

Commercial property insurance typically has higher deductibles than commercial liability insurance. This is because the risk of loss is usually much higher for physical assets than for liability coverage.

Coverage Types

Commercial property insurance typically covers a wider range of risks than commercial liability insurance. This is because the value of your business’s physical assets is usually much higher than the value of your business’s liability coverage.

Exclusions

Commercial property insurance typically has more exclusions than commercial liability insurance. This is because the risk of loss is usually much higher for physical assets than for liability coverage.

Conclusion

Commercial property insurance is insurance that covers property that is used for business purposes. This includes buildings, contents, equipment, and inventory.

Liability insurance is insurance that protects businesses from claims arising from injuries or damage that the business causes to others. This includes product liability, premises liability, and professional liability.

Both of these two are important for businesses as they offer different benefits, and if you want your business to be completely protected, you shouldn’t choose between one or the other and simply get both from one of the most trusted commercial insurance brokers in your area.

Kirkham Insurance is among the top commercial insurance brokers in Lethbridge. Schedule a meeting today so we can discuss our different policies with you!

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