COMMERICAL OVERVIEW

General Liability

Protects against financial loss resulting from claims of bodily injury, property damage, personal injury, like libel and slander, and advertising injury to others caused by a business or its employees. Exposures come from a broad spectrum of sources, including accidents on the insured premises, employment-related lawsuits and copyright infringement. A general liability policy covers the cost to defend or settle claims even if they are fraudulent. It does not cover auto and professional liability exposures.

Professional Liability

Often called “Errors and Omissions” (E&O), a professional liability policy protects business professionals and companies against liability incurred as a result of errors and omissions in performing professional services. Most E&O policies cover financial losses suffered by third parties as opposed to bodily injury and property damage, which are typically covered under commercial general liability policies.

Workers Comp

A statutory benefit prescribed in state law requiring most employers to compensate employees or their families for lost wages and medical care due to job-related injuries resulting from accidents or occupational disease. In exchange, employees relinquish their right to sue their employer for negligence. Workers’ compensation insurance helps cover the cost of injured employees’ medical and income benefits.

Umbrella

Covers losses that exceed the limits of its underlying insurance policy. Umbrella insurance provides excess limits when the limits of underlying policies are exhausted by the payment of claims, covers exclusions and gaps in underlying policies and provides protection against some claims not covered by underlying policies.

Commercial Auto

Covers liability for bodily injury and physical damage caused by vehicles used for business purposes. Factors such as ownership by a business, use in hauling goods for hire and gross weight determine a vehicle’s eligibility under a commercial auto policy. Except for auto-related businesses, motor carrier and trucking firms, a commercial auto policy addresses the auto insurance needs of most commercial entities. Some small vehicles used for business purposes can be insured on a personal auto policy.

Builders Risk

Covers property in the course of construction. It typically applies not only to property at the construction site, but also to property at off-site storage locations and in transit. Builders risk protects against building damage and damaged or lost materials, fixtures and equipment used in construction or renovation. The estimated completed value of the project is used as the limit of coverage, and protection ends when the work is completed.

Property

Helps businesses pay to repair or replace buildings, structures and contents that are damaged or destroyed because of fire, storm and other events outlined in the policy. It also pays to replace stolen or lost property. Different policies protect against different risks. Some cover only those risks named in the policy, and others cover all risks except for those that are excluded. Additional coverage may need to be purchased to fully protect a business, depending on what it does and where it is located.