When it comes to making sure a business is properly insured against unexpected incidents and losses, there’s a lot to consider. What types of insurance coverage do you need? How can you protect your business?
Securing commercial property and casualty insurance is an essential first step for insuring your business. Let’s explore the difference between these policies and how they can protect the finances, property, and future of your organization.
Property vs. Casualty Insurance: What’s the Difference?
Property and casualty insurance, often called P&C insurance, combines two separate types of policies: property insurance and casualty insurance. However, since these categories of business insurance are so closely related, they are usually referred to together.
Commercial P&C insurance covers businesses for some of the most common commercial risks, and understanding these policies is an important part of ensuring your business is protected.
Commercial Property Insurance
Commercial property insurance primarily covers losses from destruction of or damage to property—including the building and the equipment, inventory, assets, employee belongings, or machinery it contains—caused by covered perils such as theft, fire, or vandalism. This type of coverage not only protects against losses caused by damaged property but also against the loss of income you would have generated if the property had not been damaged.
Commercial property insurance is standard in most business insurance packages. There are also specialized forms of property insurance, such as business interruption insurance and builder’s risk insurance, that may apply to your unique situation.
Commercial Casualty Insurance
Commercial casualty insurance, also known as liability insurance, refers to a wide variety of policies that cover your business from third-party liabilities.
In the event that an incident occurs on your property or during normal business operations that leads to a third party suffering from bodily injury or property damage, your business could be sued or threatened with a liability claim. Casualty insurance provides coverage from any resulting financial losses.
Many types of insurance fall under the umbrella of commercial casualty insurance, including but not limited to the following:
These policies protect your business from the financial consequences of many different legal claims that could be brought against your company.
The Importance of Commercial Property & Casualty Insurance
No matter how careful you and your employees are, accidents happen. Commercial P&C is one of the best ways to manage risks and prevent serious financial consequences from ruining your company after a covered loss.
Additionally, while not legally mandated, many businesses are otherwise required to secure property and casualty insurance. Most financial institutions, for example, require the companies they work with to have adequate casualty insurance; not having P&C coverage can make it extremely difficult for a business to obtain financing.
It’s critically important for business owners to obtain P&C insurance as soon as possible to protect their business and themselves from financial disaster if something goes wrong.
How to Choose the Best Commercial Property & Casualty Insurance Coverage
Commercial property and casualty insurance is essential coverage for most businesses, so these policies are often sold together as a package. A business owners policy (BOP) is one such combination, usually consisting of P&C insurance as well as other optional policies. This bundle is especially ideal for small to medium-sized businesses looking for comprehensive insurance coverage.
Whether you want to purchase a package or obtain separate standalone policies, it’s important to work with an insurance company in your area that you can trust and that has extensive experience in business insurance.
Contact Melton McFadden for Commercial Property & Casualty Insurance in Michigan
At Melton McFadden, our experienced insurance professionals can help you develop a business insurance plan that protects your business, employees, revenue, and peace of mind. We are ready to guide you through the process of identifying areas of risk, finding gaps in your current insurance plan, and creating a business insurance solution that works best for you and your company.
Whether you are looking to protect your inventory against loss or secure additional insurance for your business, we’re here for you every step of the way.
Contact us today or request a free quote to get started.
