Business insurance, also known as “commercial insurance," exists to provide protections for businesses in the event of certain types of economic and financial losses. Many businesses, especially small businesses, might not always have the funds to cover every single loss that they might encounter. For instance, most companies are not fully prepared to cover all losses associated with property damage due to a natural disaster or other occurrence.
Instead, businesses can purchase business insurance coverage to help cover various situations that might entail a loss for the business. The business will usually pay monthly premiums to a commercial insurance provider; and the provider will then cover a certain amount of losses, which are spelled out in the insurance contract.
Generally speaking, there are two main types of business insurance plans:
In some cases, liability and property insurance plans may be purchased together. Depending on the needs of the business, they can also be purchased separately. For instance, if the business is located in an area that is susceptible to tornadoes, the business may wish to obtain a more specific type of property insurance coverage plan.
In almost all cases, there will be a written contract governing the insurance terms. In the event of a dispute, the courts will usually review the terms in the contract to determine the extent of the coverage and the rights of each party. In some cases, the written contract may not be clear, or the parties may be trying to rely on oral agreements. In that case, the court may intervene to provide a suggested course of action.
This may include issuing a damages award if a breach is found, or an order requiring the parties to rewrite or redo part of the contract. Of course, this all depends on the details of each agreement, as well as state and local laws on the subject.
Business insurance disputes can often involve various legal issues, and insurance laws are different in each state. Thus, you may wish to hire a lawyer for help with a business insurance dispute. Your attorney can provide you with legal advice on how to proceed with a claim. If you need to file a lawsuit, your lawyer will be able to represent you in court and can help protect your interests during the proceedings.
Last Modified: 05-06-2015 01:12 PM PDTLaw Library Disclaimer
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