Insurance policies of any kind always contain varying levels of coverage. Just like residential claims, commercial insurance will not always include the same coverage. There are a few important factors to keep in mind about commercial insurance if you need to file a claim. 

1. Numerous Insured Parties

On a residential insurance policy, there is typically only one insured party. A commercial policy could have any number of insured parties, depending on the nature and needs of the business. 

2. Liability Insurance

Residential insurance only covers liability claims that are filed against your property. Commercial insurance often has numerous additions to the liability coverage that can be utilized. Businesses can be held responsible for any incident that has occurred due to its products, operations, employers, and operations liability. 

3. Business Interruption Coverage

Commercial insurance can compensate for the loss of income due to covered events. This insurance will pay for the income you are unable to generate because of a covered event, allowing operations to continue to the best of their ability. Insured parties must be able to show documentation of profits before the incident and the profit loss after the incident occurred. 

4. Number of Policies

Residential insurance is one policy for one property, your home. Commercial insurance may have multiple policies depending upon the needs of the business. One policy may cover the entire business, but if multiple locations are involved that serve different purposes you may need multiple policies to accommodate each location.

5. Customizable Coverage

Residential insurance often follows a standard set of coverage depending on the type of property and its location. Commercial insurance can be customized to address specific risks associated with the nature of operations. Commercial insurance can include coverage options for record reproduction, employee wages and personal property, and the increased cost of maintaining code regulations when rebuilding to name a few.

6. Surplus Lines Insurers

Insurance companies that offer residential insurance may only do so for a property that is located within the state they are licensed to insure. Commercial insurance policies are now regulated by surplus line insurers. These insurers are not licensed to do so by the states which have led to a decreased regulation or no regulation by the department of insurance. Surplus lines insurers are not backed by the state if they shut down. Businesses that employ surplus lines insurance must be wary of the terms and fully aware of any possible risks.