Insurance policy classification is based on the specific type of business you operate and the risks involved. This classification determines the kind of coverage you receive. It's based on factors like the services you offer, the size of your business, the number of employees, and your business location. Each class has its own set of risks and premiums associated with it."

For instance, if you run a painting contracting business, your policy will be classified differently from a window & glass contracting business. While both are in the home service industry, they have different risk profiles - painters might have higher risks related to property damage, whereas window contractors might face risks related to installation errors. Your policy is classified to specifically address these unique risks. If incorrectly classified and insurance company has the right to deny a claim.

Understanding your policy's classification is important because:

• It ensures that you have the right coverage for your specific business risks.
• It helps in accurately determining your insurance premiums.
• It allows you to evaluate if you need additional coverage based on your business activities.