The Difference Between Commercial Property Insurance and Business Liability

Learn what you should expect from these different types of commercial insurance coverage.

As a business owner, it’s your responsibility to ensure that that your company has the right small business insurance to meet its needs.  This is why it’s a good idea to have commercial property and business liability insurance in place.  Here is a closer look of these two distinct types of insurance coverage.

Commercial Property Insurance

Commercial property insurance is a policy that protects your business’s physical assets, including its building, furniture, supplies, equipment, inventory, and so on.  This is the coverage that you should look to when you need to repair or replace business property that is damaged by fire, hail, lighting, wind, vandalism, theft, explosions, and so on.

Business Liability Insurance

While commercial property insurance covers damage to your business’s property, what happens if your business inadvertently caused damage to another’s property?  This is where business liability coverage kicks in.  Not only will this type of insurance cover accidental damages, but it will also cover injuries that happen on your property and the costs associated with a lawsuit should an injured party decide to sue your business.  This coverage offers protections to those that interact with your business, including customers, partners, suppliers, vendors, and employees.  Because each interaction has its own risks, there are different types of liability insurance that you can carry.  For instance, your business can carry general liability insurance, professional liability insurance (aka Errors & Omissions Insurance), workers compensation insurance, and employment practices liability insurance.

These are the main coverage differences between commercial property and business liability insurance.  While different, these are both essential small business insurance policies that your company should have in place.  We at PMC Insurance Group are experts on small business insurance and can help you get the coverage you need.  Contact us today to learn more about getting competitive coverage for your small business clients.

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