Some insurance companies use the terms “commercial insurance” and “business insurance” interchangeably.  While this isn’t necessarily wrong, it may not be accurate in some instances.  Is commercial insurance and business insurance the same thing? Keep reading if you’re curious about the difference between commercial and business insurance. 

What Is Commercial Insurance? 

Commercial insurance aims to keep businesses protected against any risks that may threaten their success. Different forms of commercial insurance are aimed at protecting different aspects of businesses. For example, cyber liability insurance will protect businesses if they suffer data breaches or other cyber security threats. 

There are many forms of commercial insurance, such as commercial auto insurance, workers compensation insurance, and business interruption insurance. Each serves a specific purpose, and all of them can be beneficial for the right business. 

What Is Business Insurance?

Business insurance is slightly different from commercial insurance. Business insurance products include property and casualty insurance coverage for businesses. These insurance products protect businesses from potential losses they couldn’t afford to cover on their own, allowing companies to operate with less concern for the risks associated with their operations. Some examples of business insurance include professional liability insurance, property insurance, and product liability insurance. 

The Difference Between Business Insurance and Commercial Insurance

There isn’t a huge difference between business insurance and commercial insurance. Both are designed to protect businesses from losses, but commercial insurance is a more general form of coverage. For example, commercial property insurance covers all your company’s physical assets, including buildings, equipment, and inventory. On the other hand, business liability insurance covers your actual business operations. For example, if you are found to be at fault for an incident that causes bodily injury or property damage, business liability insurance will help you pay for the damages. 

The difference comes down to the phrasing used to differentiate coverage. If it’s easier for you, you can interchangeably use the terms business insurance and commercial insurance because there isn’t much difference. 

Do You Need Business or Commercial Insurance?

Running a business without adequate coverage is risky. Magnolia Insurance Agency can help you cut your risk level by providing you with the appropriate coverage. To get started with a free quote on insurance in your area, give us a call at 770-213-5171.

Commercial Insurance / By Magnolia Insurance Agency