Jeff is a small-business owner looking for the right insurance coverage for his company. Kelly is a CEO with facilities nationwide who needs hefty policies to insure her business. Don, an entrepreneur hoping to get his woodworking business off the ground, wants to know he has the right insurance in place.
Quick quiz: Which do they need – “commercial insurance” or “business insurance?” Hint: it’s a trick question.
The answer: In fact, both terms refer to the same thing. Both commercial insurance and business insurance make up the category of insurance that provides coverage for business owners and their businesses – large or small.
Because these two terms can be used interchangeably, and because they’re widely considered to mean separate things, confusion abounds; many business owners labor under the false impression that they need one or the other (or both).
Misconceptions and the upshot: Some believe one applies to small businesses only; others think liability or workers’ compensation fall under one or the other of these categories. The result is that many owners who are considering possible insurance options for their companies are missing a bet; they may be inadvertently overlooking some excellent providers and policies.