There are many unfamiliar terms you’ll come across in your commercial insurance policy paperwork or that you’ll hear from your insurance agent. It’s a good idea to gain an understanding of what these mean as soon as possible so that you don’t have to figure them out when you go to file a claim. An agent from Hermes Insurance Solutions of the greater Sanger, TX area can assist you with understanding what’s relevant to you.
Here are some of the more common terms you’ll find in commercial insurance.
Business Interruption Insurance
This offers your company protection if you experience any commercial losses from an event that causes you to halt your operations temporarily.
Effective Date
The effective date of your policy is the exact date when the policy begins to provide coverage.
Exclusions
Exclusions are the specific perils or hazards (events/causes) that are not covered by the insurer’s plan.
Premium
The premium is the amount that the policyholder pays to the insurance company in order to get coverage through their policy.
Product Liability Insurance
This protects your company in the event that anyone files a claim after they’ve experienced losses due to a malfunction, defect, or some other issue with a product that your company sells.
Umbrella Insurance
This is the type of policy that exists to meet gaps in coverage with your current business insurance policies. It protects you in the event that a loss occurs that your policy doesn’t cover completely or at all.
Workers’ Comp
This is the shorthand you’ll often hear for workers’ compensation insurance. This offers coverage to your employees if they experience losses after an illness or injury that occurs while they’re conducting work tasks for your company.
