How best to protect yourself against unplanned liabilities than to invest in insurance? There is no two way to look into this; an insured commodity has a higher chance of much aeration than one which isn’t. This strikes both ways for businesses and individuals. There are unforeseen risks attached to running a business and just living your life minding your business. Most times these risks are unavoidable. No matter how extremely cautious and calculating you might try to prevent them from happening. Read more about insurance here.
Whichever aspect of your life you choose to insure, investing the right insurance policy is the only backup plan you’ve got. Nonetheless, there are vital differences to be educated on between these two insurance policies. Having a complete understanding of both policies will help you decide which you need and when. Here are a few differences between a personal and business insurance policy:
Whose Name is stated on the Policy?
For starters, the basic difference between these two insurance policies is the name assigned to it. You should expect that the title on an individual insurance policy will be the one who is entitled to the claims from the company. On the other hand, the business or corporation name will surely be named on a business insurance policy.
As basic as this may sound, whoever bears the title on an insurance policy gets the claims because the insurance company is only responsible for every policy as stated in its database. A business owner has no claim whatsoever to the insurance policy named under the business. He automatically forfeits the right to such claims after he named the policy to the business.
Type of Commodity Insured
Each of these insurance policies has different types of commodities and/or properties to be insured. The length to which these properties are covered also varies, one to the other. For example, a homeowner’s insurance policy might be extended to shield damage on the home by a break-in or natural disasters. While on the other hand, the details of business insurance for properties would cover all equipment in the property before the damage.
Since a business commits higher than a personal insurance policy and faces a much higher risk than an individual, its insurance policy would be more detailed.
Car Insurance Coverage
Both individuals and businesses need insurance coverage to shield possible driving damage because they both need to drive. For an individual, getting a car insurance policy would only require that you provide your driving record and stay more cautious of future car accidents. On the other hand, a company set out to ensure a corporate vehicle needs to constantly worry about each car driver, the liability of future accidents, and driving records.
As expected, a business insurance policy should cost more than an individual’s. Not only because a company gets to insure more than one vehicle, but also because more than one driver would be involved in the liability evaluation.
We have a few other differences between these two insurance policies, but we decided to get you informed with the most basic of all. Regardless of which you need at the time, scouting for the best insurance provider to cover all your liabilities requires more research. Get Insured today!