When you are new to business or commercial insurance, you may have lots of questions. You may find some included terms confusing. Insurance companies use terms that may not be part of everyday language. Most people will need clarification of at least some insurance terms. At Adams Insurance & Financial in Northwest Arkansas, we are here to help our customers any way we can, whether answering questions or explaining terms.
- Actual cash value- This is the amount your property is actually worth today. A 10-year-old machine you use in your business is not worth the same amount when purchased. When you choose this type of coverage, depreciation is taken into account when you try to collect.
- Business interruption insurance- If your business suffers a covered peril, this insurance can provide the money your company needs to meet normal expenses while you cannot do business.
- Business owners’ policy (BOP)- A Business Owners’ Policy combines two of the most common commercial insurance coverage types, property and liability coverage. Usually, this combination will be less expensive than the two policies separately.
- Commercial Lines- These are insurance products that provide business coverage in the form of commercial auto, general and professional liability, workers compensation, and other coverage to protect your business.
- Replacement cost- Replacement cost is exactly what it sounds like. If something you need to do business with is damaged beyond repair, it will be replaced at the cost of replacement today, not the cost when it was purchased.
- Rider- This may also be referred to as an endorsement. It is an amendment or an alteration to your policy that provides additional or something not covered on the original policy.
- Workers Compensation Insurance– This is a commercial line of insurance that protects workers when they are injured while doing their job.
Contact Adams Insurance & Financial in Northwest Arkansas for all your commercial insurance needs.