What Is Commercial Lines Insurance?

Commercial lines insurance includes property and casualty insurance products for businesses. Commercial lines Insurance protects businesses from potential losses they can't afford to cover and allows companies to operate when it might otherwise be too risky. Commercial policies may be contrasted with 澳洲幸运5官方开奖结果体彩网:personal lines insurance.

Understanding Commercial Lines Insurance

Commercial lines insurance includes commercial auto insurance, workers' compensation insurance, federal 澳洲幸运5官方开奖结果体彩网:flood insurance, aircraft insurance, 澳洲幸运5官方开奖结果体彩网:ocean marine insurance, and medical 澳洲幸运5官方开奖结果体彩网:malpractice insurance. Commercial lines protect businesses against financial losses caused by accidents, lawsuits, and 澳洲幸运5官方开奖结果体彩网:natural disasters.

Available coverages and premium costs vary by business type, size, and location. In 2022, the monthly cost of a business insurance policy ranged from $42 for professional liability to $70 for workers’ compensation.

Each policy is tailored to the type of business covered and the client’s unique needs. A structural engineering firm may need 澳洲幸运5官方开奖结果体彩网:professional liability insurance that protects the company against claims of negligence in creating a building’s plans, performing inspections, and supervising construction. The firm might also purchase general coverage for each project, plus coverage for 澳洲幸运5官方开奖结果体彩网:punitive damages.

Small Business Insurance

A small, home-based business might need one or more commercial lines because homeowners insurance provides limited or no insurance for business activities. A home business might need commercial auto insurance for a company-owned delivery vehicle, worker's compensation insurance for the employee who drives the vehicle, property insurance to cover business goods stolen from the home or vehicle, and 澳洲幸运5官方开奖结果体彩网:liability insurance to protect against cla❀ims by any client who claims the company's 🃏product harmed them.

Types of Commercial Lines Insurance

Workers' Compensation Insurance

澳洲幸运5官方开奖结果体彩网:Workers’ compensation is a form of employe🥃r insurance coverage that pays benefits to workers who are injured or become disabled as a result of their job. 

Debris Removal Insurance

澳洲幸运5官方开奖结果体彩网:Debris Removal Insurance covers the cost of removing debris after a catastrophic event, such a🦩s a fire burning a building down. Before rebuilding, the remains of the old building must be removed. Property insurance alone typically won't cover the costs of removing the debris.

Builder's Risk Insurance

Builder's Risk Insurance insures buildings while under construction.

Glass Insurance

Glass insurance covers broken windows in a commercial establishment.

Inland Marine Insurance

澳洲幸运5官方开奖结果体彩网:Inland Marine Insurance 🙈covers property in transit and other people's property on the business premises. This insurance would cover fire damage to a customer's clothing from a fire a🐻t a dry cleaning business.

Business Interruption Insurance

澳洲幸运5官方开奖结果体彩网:Business Interruption Insurance covers lost income and expenses from property damage or loss. If a fire forces a business to close for two months, this insurance would reimburse for , taxes, rents, and net profits that💙 would have been earned during the two months.

Demolition Insurance

澳洲幸运5官方开奖结果体彩网:Demolition Insurance covers the costs of demolishing a building damaged by a peril, such as a fire or storm. Zoning requi🎀rements or building codes may require that a damaged building be demolished rather than repaired. Demolition insurance covers the cost of tearing down undamaged portions of a damaged structure.

Crop-Hail Insurance

澳洲幸运5官方开奖结果体彩网:Crop-Hail Insurance provides coverage for damage and destruction by hail and fire. Purchased by farmers, it is designed to protect agricul🤪tural products while they are still in the field and have yet to be harvested. Crop-hail insurance protects the livelihood of farmers, who are often at the mercy of sudden weather events.

The Bottom Line

Commercial lines insurance includes products designed for businesses. Losses covered under commercial lines insurance include malpractice, professional liability, and builder's risk. Home-based businesses may require a commercial line because homeowners insurance commonly provides limited or no insurance for business activities.