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personal and commercial insurance

What’s the Difference Between Personal and Commercial Insurance?

Commercial and personal insurance have similar traits. They can help protect you and the things you’ve invested in. Whether that’s a property, car, or other valuable, insurance is there to help protect you financially in case something unexpected happens. You may be wonering what is the difference between commercial and personal insurnace? Though both types of insurance help defend against loss, they serve different purposes. These are some of the big difference between personal insurance and commercial insurance.

Named Insured

The named insured is the entity that the insurance is covering and is a point of difference in personal vs commercial insurance coverage. For a personal insurance policy, the named insured will be a person, a couple, or a family. It protects you and your family. Meanwhile, for commercial insurance, the named insured will be an entity. Depending on what your business structure is, the named insured will probably be your business. However, a business insurance policy may have more than one name as the named insured.

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The Type of Property

When thinking about personal vs commercial insurance, consider the type of property that needs to be covered. With a personal insurance policy, your homeowners insurance will likely cover your house and its contents. However, a commercial insurance policy is geared towards protecting the structures related to your business. This could be an office or a warehouse. Contents coverage for a commercial insurance policy can also help protect your inventory, furniture, machinery, or other business property.

Auto Insurance

While auto insurance is essential for anyone on the road, personal and commercial insurance coverage differs. A personal auto insurance policy will help protect you, your car, and anyone who may be involved in an accident. A commercial auto policy is needed for any vehicles that you use for business purposes. If you have large tucks or specialty vehicles, then you may need a special insurance policy to adequately protect you. The auto insurance requirements vary state to state, so it’s important to check those with an agent for both commercial and personal auto insurance coverage. You should also ask about commercial license plates.

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Liability Coverage

The difference between personal and auto insurance is evident in liability coverage. For businesses, there are can be a variety of potential liabilities. For example, a customer can slip and fall in your store. Or, there could be a risk of cyber liability. You also need to protect yourself from potential employee lawsuits. These types of liabilities are addressed in a business insurance policy. Commercial policies are designed to help mitigate risks associated with running a business. The types of coverage vary depending on what your company needs. But generally, a company should have a Business Owner’s Policy, which includes general liability, workers comp, cyber insurance, etc.

Meanwhile, personal lines insurance is geared towards protecting you from the dangers of day-to-day life and unexpected events that could occur. For example, your homeowner’s insurance policy is designed to address liabilities involving guests, nature, theft, etc. A personal insurance policy won’t cover the liabilities associated with running a business. It’s there to protect you from the misfortunes that may occur in your everyday life.

Where to Find Coverage

Depending on what you need coverage for, personal or commercial insurane, can dictate where you get it. At Encharter, we can provide coverage for both personal and commercial needs. It’s best to speak with an insurance agent since they can help you assess the right coverage for your situation. At the end of the day, Encharter is here to help you find the coverage for your needs, whatever they may be.

In Conclusion

The main differnce between personal and commercial insurance is what they are being used for. You need personal insurance if it deals with your life and you need commercial insurance if it deals with your business. It’s important to get the right type of coverage for your sitaation You can’t expect a commercial auto insurance policy to protect you from a tree falling on your home! And if you are ever in doubt or have any questions/concers, chat with an Encharter agent!

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