Both commercial and personal lines insurance share some similar features. They help protect you financially and the things you have invested in whether it is a property or a car.

Though both types of insurance help cover you against damages or losses, there are some differences between commercial and personal lines insurance.

Names of the Insured
For business policy, the names of the insured is an entity and may vary depending on its type such as partnership, sole proprietorship or corporation. The name of the insured for personal policy will be individuals or married couples.

Property Coverage
Policy to protect property for a business is different from a personal policy. While your Houseowner and Householder Insurance may cover your house and its content, property coverage for commercial will cover various building types such as offices, storefronts and warehouses. Contents insurance will also help protect inventory, office equipment, machinery, furniture, fixtures and fittings and/or other business property.

Liability Coverage
The liability coverage insure businesses which have wider concerns than individuals. Businesses are often exposed to a variety of potential liability such as public liability, product liability, cyber liability, professional indemnity, employer’s liability, and directors and officers liability. Since businesses have their own unique operations, it is essential to know and understand the type of liability exposures.

On the other hand, for individuals, there is only personal liability. It is a liability coverage when someone who is not living with you is injured while on your property.

Auto Insurance
Auto insurance is important for anyone on the road whether it is for personal or commercial use. The main difference between commercial and personal auto insurance is who owns and drives the vehicle.

A personal auto insurance policy covers you when you drive for personal reasons such as driving to and from work, going to grocery or going to the dentist. This policy only insure the car that is registered in your name.

If the vehicles are registered to your business and you are using them as part of your business, then they will require commercial policies.

Here are a number of other factors which set commercial from personal auto insurance apart:

1. What is the vehicle used for?
2. Types of vehicle – size and weight
3. Type of license
4. Higher liability limits required

ibizcover.com provides information on a number of business insurance packages and options for your business. To learn more, go to the products pages at www.ibizcover.com.

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