Commercial and business insurance can be complex because every business is different, products are different, operations are different, therefore liability exposures are different. Our commercial and business lines experts will sit down with you and discuss the business you’ve created or are creating, to make sure your exposures and liabilities are covered and covered to the extent they need to be. Below is a short list of some popular business and commercial products.
A business owners policy, also called a BOP, is a great alternative to the often complex commercial package policy and is a great solution for small businesses. This smaller business policy is similar a homeowner’s policy, including coverage for property, liability, and other coverages as part of the policy with no additions or modifications needed. Businesses eligible for a BOP is extensive, but classes of businesses include: retail spaces, offices, service businesses, apartments, wholesale distributors, contractors, and small restaurants. Coverages included in a BOP are:
Additions can be made to the BOP to include utility service lines, and hired and nonowned auto liability.
Commercial package polices are structured similarly to a homeowner’s policy in that the basic structure begins with coverage for property, and general liability. From this base, other insurance coverages are added to create the “package”. A commercial package policy can include some of the following:
Coverage on real property like office buildings, factories, warehouses; and personal business property like furniture, fixtures, machinery, and inventory.
Builder’s Risk: covers commercial, residential, or farm buildings that are under construction.
Condominium Association: insures a condominium association against direct physical loss or damage to buildings, and business personal property.
Condominium Commercial Unit Owners': protects contents in the condominium and is only for the owner of a commercial condominium.
Business Income: pays for the loss of income after a direct physical loss insured against that forces the suspension of business operations during repair or reconstruction.
Extra Expense: reimburses the insured for expenses to keep a business operational after a covered loss.
Commercial Inland Marine: covers exposure that involve property and merchandise while in transit. Items covered include valuable papers and documents, mobile equipment, imports and exports, and many others.
Commercial Auto: used to insure the private passenger and commercial auto exposures of all businesses other than garages such as auto dealers, auto services business, truckers, and motor carriers.
Commercial General Liability: protects the company’s assets, and provides financial resources in the event a liability claim is made.
Crime: is insurance designed to protect a business or government entity against loss from crimes such as burglary, robbery, theft, and employee dishonesty.
Commercial auto coverage can be part of a commercial package, or it can be written independently. Commercial auto is used to insure the private passenger and commercial auto exposures of business other than garages such as auto dealers and auto service business, truckers, and motor carriers. Commercial auto insurance is similar to personal auto as it is comprised of the same basic parts, liability coverage, and physical damage coverage. Uninsured and underinsured motorist coverage can be added to the base policy.
Liability: Liability coverage covers your liability in an accident if you are found to be at-fault.
Uninsured Motorist: Uninsured Motorist covers you in an accident if someone who hit you leaves the scene of the accident and cannot be found, or that person does not have insurance. Uninsured Motorist covers you inside or outside your vehicle for incidents involving a vehicle.
Underinsured Motorist: Uninsured Motorist covers you in an accident if someone who is responsible for the accident has insurance but doesn’t have enough insurance to cover their liability for your medical or property damage expenses.
Comprehensive: Comprehensive covers incidents to your vehicle for things other than collision. Some examples of coverage incidents include hail damage, a tree falling on your vehicle, and similar events.
Collision: Collision covers damage to your auto in the case of collision with property, whether it’s another vehicle or an object such as a pole.
Garage Physical Damage: is coverage for auto sellers and is the same coverage as the business auto coverage, including comprehensive and collision.
Garage Keepers Coverage: is for customers’ property that is in your possession for servicing, repair, parking, or storage.
Professional liability arises out of providing or failing to provide a service of professional nature. This type of liability exposure is excluded from a standard commercial package policy, therefore special professional liability polices were developed for exposures such as physicians, surgeons, dentists, lawyers, insurance agents, architects, accountants, and directors and officers of corporations. Professionals have a duty to perform their job and do within the requirements of their license and regulations. Common examples of professional liability are medical malpractice, errors and omissions, fiduciary liability, and directors’ and officers’ liability.
The standard commercial policy does not include coverage for liquor liability exposure, so an endorsement to a policy must be made to cover this liability. Liquor liability provides coverage for bodily injury, and property damage as a result of contributing to a person’s intoxication.
As you may know almost all forms of personal and commercial insurance policies exclude damage and liability arising out of aviation operations. Aviation physical damage coverage, also called aircraft hull insurance, is very similar to the comprehensive and collision coverage of an auto policy. This coverage includes the complete aircraft, including its airframe, engines, controls, electronic navigation equipment, and electronic radio communications equipment.
Just like personal umbrella insurance, the purpose of commercial umbrella insurance is to provide extra liability coverage in a situation where the main policy’s liability limits have been reached. An existing underlying liability policy must be enforce before an umbrella policy can be issued or the policy covers a loss.
Workers’ compensation is a program managed by each state, and allows employees the right to collect for injuries, disability, or death that occurs during duties of employment. Workers’ compensation provides disability/loss of income benefits, medical benefits, rehabilitation benefits, and survivor/death benefits. For workers’ compensation the employer agrees to pay benefits regardless of fault, with few exceptions, but the acceptance of workers’ compensation is exclusive remedy. Meaning, if an employee accepts workers’ compensation benefits, they may not pursue other ways of collecting compensation from the employer.
As you can see from the short list to the right, business and commercial insurance can be complex and extensive, so it is extremely important to discuss your business with our commercial insurance experts.
One of the many reasons that complete and adequate coverage is essential is that a single liability suit can cost a business everything they have, and end the life of that business. Additionally, if the business is not formed and protected correctly, a legal suit could extend into the personal lives, finances, and property of the owners.
