Commercial Versus Business Insurance For Contractors: Is There A Difference?

​While these two terms may be interchangeable most of the time, there is a distinct difference between commercial and business insurance alike. This article will give you some essential points that will let you know the differences between the two.

Five Salient Differences

1. The Specific Goal
   First, commercial insurance for contractors and trades refers to policies and protection for specialized jobs. For example, if they are going to work on a commercial building such as hotels or malls, they need to have commercial insurance to cover them for any damage.
   
   On the other hand, if they will repair smaller business establishments, they only need business insurance. In short, the former is much more expensive than the latter in terms of coverage.
   
   
2. Coverage
   There's also a big difference between the two in terms of coverage. For example, commercial auto insurance for contractors covers vehicles used for particular work-related projects such as trucks or tractors.
   
   Business insurance can cover delivery vans or other smaller vehicles used for any business platform's day-to-day operations.
   
   
3. The Bundling
   Commercial insurance for contractors and trades also encompasses a lot of other policies compared to business insurance. If you work as a contractor, you would have to get commercial liability insurance and workers’ compensation, and commercial health insurance.
   
   Business insurance for contractors, on the other hand, is a much more straightforward policy. It protects the entire project from any additional expenses due to damage to both equipment and employees.
   
   In connection with this, commercial insurance usually is bundled with other types of insurance as well. It helps the applicant save on premium payments down the line.
   
   
4. The Application Process
   ​Business insurance is a much more straightforward application. It means that you will have simple requirements to be able to get coverage down the line. Commercial insurance involves a much more complicated process. It would be best if you asked your local insurance agency for more information regarding this.
   
   
5. The Scope and Limitations
   Lastly, business insurance for contractors can be quite limited compared to commercial insurance. You have to be aware of the factors that may affect your commercial insurance policy down the line.

The Conclusion
Again, don’t hesitate to ask your local insurance agency for more information about this in the discussion. You will never regret it for sure. Being well informed will help make the most out of your insurance policy in the future.

At Desmond Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (859) 491-5100. You can also request a free quote by CLICKING HERE.