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Business Insurance vs Property Insurance

While insurance is very important for any business, it can get confusing. If you are not already familiar with the types of insurance that are out there, you could end up getting the wrong coverage, or not being covered for something when you need it. This often happens when business owners consider business insurance and property insurance. You might think that getting comprehensive business insurance will have you covered for everything, but commercial property insurance is also necessary to make sure that you are fully protected. Here are the main differences between the two. 

Business Liability Insurance

Business insurance tends to refer to protection against liability from incidents that happen on your property or that involve your business. This can include injuries to staff or clients, or damage. It provides compensation to you for the costs associated with getting sued, such as defence funds and settlements. It also provides compensation to the injured parties in the form of lost wages, medical bills, and pain and suffering. You can also protect yourself against business-related damages, such as if a client sues you for not producing what they feel you agreed to. 

Business Insurance vs Property Insurance
Business Insurance vs Property Insurance

Business Liability: This is the type of coverage that protects against liability for injuries and damages on your property. As a business you may be held liable by the injured party and sued for compensation. As long as incidents occurred during your regular business operations, then you will be covered for legal fees, awards, and settlements. 

Product Liability: this type of insurance protects you against liability if a product that you produce causes damage or harm to a customer or their property. This can happen if there is a defect with the product, or if the instructions for use were not clear enough. You can also get insurance for situations where you may have to go through a product recall as well. 

Errors & Omissions Liability: You may also need protection in the event that your professional services or advice cause damage to a client. This could happen, for example, if a real estate agent lists the wrong dimensions of a home. It could end up that it sells for less than it is worth, and the client may seek compensation. With this coverage, the agent would be protected and be able to handle providing that compensation if it is deemed necessary. 

Commercial Property Coverage

Commercial property coverage protects against damage, loss, or theft of your property. Property can include tools, equipment, your inventory, materials, supplies, components of your office space, and almost anything else on your property. All of this property can be considered at risk merely by being on your work site. You could be vulnerable to theft, fire, accidents, vandalism, and natural disasters. You can get commercial property coverage online and select all of the applicable items that you need to protect for comprehensive coverage.  

One thing that’s important to remember is that property insurance can be tailored to your specific business. In fact, you may be able to select a pre-packaged coverage plan that covers you. For instance, carpenters have unique risks that are not applicable to other businesses. Make sure that you choose your provider’s carpenter coverage, or select all of the elements that you need as part of your policy to be completely covered. You should also purchase coverage for storage or other property that you have off-site from your primary place of work. This can include home offices and workplaces where your employees may get injured while performing the duties of their employment. 

Make Sure You Have The Right Coverage

As you can see, business insurance tends to refer to protecting you and others, while property insurance protects business property. No business is the same, and no workplace is the same, even within the same industry. That’s why customization is so important. You need to make sure that your coverage, both liability and property, fits your business and provides blanket coverage. Otherwise, if something happens, you will be left holding the bag when you had thought that you were protected. Your instinct may be to try to save money instead of protecting against unlikely occurrences, but you will be more than thankful to have that protection if you need it. 


Insurance is never something that should be skimped on. The only way you should be looking to save money when it comes to insurance is through rates for the same coverage. If you leave things off and end up needing it, your business could drown under the flood of associated costs. Remember, having strong business liability does not protect you against everything. You need comprehensive commercial property insurance to be fully protected. That way, you, your clients, your staff, your business, and your property will all be protected against everything you can possibly think of. You will sleep better at night knowing that you are covered. 

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