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Private Insurance vs. Commercial Insurance

Regardless of your life’s course of events, how much money you earn, or how smooth your business is going, one of the most important financial decisions you can make to prepare for the unexpected is investing in insurance. In fact, according to the Insurance Information Institute (III), the U.S. insurance industry recorded net premiums totaling an astounding $1.4 trillion in 2021. Such statistics indicate the growing need of individuals — including business owners — to find adequate insurance coverage that will help offset any financial loss resulting from unforeseen events.

Whether you’re a business owner interested in protecting your investment or a private citizen needing health insurance, understanding the unique differences between private and commercial insurance can help ensure you’re sheltered when problems arise.

Private Insurance

Private insurance protects a person from everyday risks that can potentially cause financial loss. Some common forms of private or personal insurance include:

Auto insurance

Homeowners insurance

Life insurance

Renters insurance

State and federal laws can mandate some forms of personal insurance, such as health and auto insurance. Whereas health insurance helps offset medical expenses for an individual and their direct beneficiaries, auto insurance can cover property damage and repair costs in the event of an accident.

Other insurance forms are not mandated by law but may be necessary for some individuals. According to Financial Samurai, the average American invests over 70% of their entire net worth into their home. Because of this, many people also need homeowner’s insurance to protect their investments from risks like fire, water damage, and vandalism.

Corporate or Commercial Insurance

Commercial insurance protects a business from financial loss that results from third-party lawsuits. Businesses are often liable for third-party injury or damage if it happened on their premises or involved their products. Some of the most common commercial insurance policies and what they cover include:

– General liability: Covers different risks common in regular day-to-day business operations. Common claims your general liability insurance may cover include libel, slander, and fraud.

– Commercial property: Helps handle any repair or replacement costs for damage to your business

– Workers’ compensation: Protects your employees against hazards that cause injuries in the workplace. This insurance coverage pays medical expenses for injured employees and also covers lost wages.

– Business owners: Shields a business owner from liability involving their business

– Liquor liability: Protects your business against claims of third-party injury or property damage caused by intoxicated patrons at your establishment

– Cyber liability: Protects your business from claims of a data breach affecting confidential client information

Some risks relating to business operations may result in your business getting sued. Commercial insurance takes care of all costs associated with the case, including:

– Court levies

– Representative’s salaries

– Settlement costs

How commercial insurance works

Before obtaining commercial insurance in Bucks County, insurance experts must assess your business’s risks and needs. Steps that insurance experts take when offering you commercial insurance include:

Step 1: Evaluate your business operations to determine a policy that best covers your unique needs. Evaluators can collect basic information about your business, including its industry and location, operations, annual sales, and owner information. Such information helps measure business risks, making sure you get adequate coverage.

Step 2: Offer you an accurate insurance quote depending on your needs.

Step 3: Answer any questions or concerns while exploring coverage options. Details of your policy that determine the costs include:

– Deductible

– Policy limits

– Exclusions to coverage in your policy

Find Reputable Insurance Experts in Bucks County

Insurance can help protect you and your business from the unknown — but not all insurance providers are created equal. The team of experts at Freedom Insurance Group, Inc. has over 50 years of combined experience guiding our customers through the insurance process. We represent more than 20 top-rated insurance companies to remain competitive in the market and determine a policy that’s right for you.

Contact us today to learn more about private and commercial insurance in Bucks County.