When purchasing a commercial insurance policy, some people may feel confused because they are not familiar with the terminology of commercial insurance. Don’t worry because here are a few to get you started in what you need to know.
If you see ACV or Actual Cash Value on your policy this is what describes the actual value of your property if an insurance company had to pay you cash for it. It will include property and value of profit. You will want to make sure that this number is agreeable to you because if you need your insurance this is all that you will get.
Business interruption is a term used if you have an incident and you cannot run your business. This can be for many reasons so check what is listed as exceptions in your policy. Otherwise all interruptions should be covered. This will help you pay payroll and be compensated for lost profits while your business is not running.
For extreme circumstances for a larger corporation you can have Difference in Conditions (DIC) coverage on your policy. This is only for larger needs and may not be needed for a small business as your other insurance will cover it. It will cover large catastrophes such as a flood. If it is not on your regular insurance you can have it added later on a separate policy.
Many business owners carry an Employee Dishonesty Coverage rider on their insurance policy. This will protect you from being ripped off from you own policy from an employee who steals from you. You can also be assured that the insurance company will go after the thief to retrieve the money they had to pay you. Ask your broker if you need this rider or if it is covered in your blanket policy that you are paying.
Many other terms are used for commercial insurance purposes but these should get you started. If you want to learn more search terms on the internet for any words in your policy you do not understand. Take notes and ask questions of your insurance broker if needed.

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