Three Popular Types Of Commercial Line Insurance
A commercial lines rating system has to be able to adapt to cover a wide range of products. While these products may share many features in common, such as their relatively small size and the relatively standard fashion in which they are sold to many different purchasers, the nature of the products themselves can be very different.
Here are a few common products that may be sold through a commercial lines rating system.
Worker’s comp insurance
Worker’s comp is a policy that pays out every time that a worker is injured on the job. The payout covers medical treatment and rehabilitation, and it may also provide some form of compensation for lost wages. In most countries, companies above a certain size are required by law to purchase a worker’s comp policy.
Liability insurance is designed to protect the purchaser from lawsuits and similar legal claims. It pays out when the purchaser is sued, in order to cover legal costs and the costs of the legal settlement. In general, liability insurance policies will not cover ever lawsuit. They will only pay for claims that fall within the nature of the insurance policy.
Commercial fleet insurance
Commercial fleet insurance is a form of auto insurance that covers vehicles used strictly for business purposes. Delivery vehicles fall under commercial fleet insurance, as do transportation shuttles and taxis. The details of a fleet insurance policy often differ significantly from a standard auto insurance policy because the vehicles are used in such different ways.