Unlike life insurance and health insurance, which provide very specific types of insurance coverage, commercial insurance typically is made of the types of property and casualty insurance. This type of coverage (check Wikipedia), such as property and casualty, are the kinds of insurance plans that guard homes, autos and other types of property, as well as their owners against the costs of damage or destruction or the costs of liability, is someone is injured or killed or something damaged or destroyed and the owner is held liable.
Commercial insurance policies are based on the concept of indemnity, which states that an insured party must be restored to his or her prior condition before suffering a loss caused by a covered peril. If an insured party were to have a car accident and the incident was covered by a commercial insurance plan, in this case, an auto insurance plan, then that party would be reimbursed up to coverage limits and minus any potential deductibles.
A deductible is designed to help keep the cost of maintaining a commercial insurance plan, such as car insurance or home insurance, affordable for the insured party, but a deductible should not be so high that leaves the insured party financially vulnerable. A standard $500 deductible on a car insurance plan with full-coverage options is an example of a deductible that most people easily could pay in the event of an emergency.
Be Prepared… the meaning of the motto is that a scout must prepare himself by previous thinking out and practicing how to act on any accident or emergency so that he is never taken by surprise.
Deductibles often range from zero to $1,000 and sometimes more. But plans with no deductibles often have high premiums to be paid by the policyholder each month. And deductibles of $1,000 or more can leave the policyholder owing too much money at a time when every penny counts after some unfortunate event.
A plan also can help keep down the costs of defending a lawsuit or paying a settlement if someone is hurt on your property or by your property. General liability insurance plans usually are low-cost ways to help make sure an organization or individual is not bankrupted by a lawsuit arising from an unfortunate accident or another event that is covered by a liability insurance plan.
A plan, like all nearly all insurance plans, protects against specified “perils” up to policy limits. Policy limits could be anywhere from a few hundred dollars up to $1 million or more, depending on what or who is insured and why. Such insurance plans can be written for people or for businesses and other organizations based on the concept of indemnity and for reasonable premium amounts.
State insurance officials ensure each type of insurance plan approved to be sold in their respective states meets stringent regulatory guidelines and does not charge too much. It is against the law for any kind of insurance plan, not just a common insurance plan, to generate too much profit. If an insurance plan results in too much profit over a business year, state insurance officials will make that insurance company repay the portion of premiums deemed to be excessive.