Property, Casualty and Liability Insurance - Business Insurance

BUSINESS

Commercial Property & Liability Insurance

Commercial Property and Liability insurance is commonly known as a "General Liability and Property insurance package" or as a Business Owner's Policy (BOP).

A commercial liability and property package policy includes basic liability insurance to cover commercial liability and property insurance for physical assets, such as contents, that are leased or owned. The package insurance policy may also cover loss of business income and extra expense resulting from an insured peril. A business insurance package policy generally insures lost or damaged property for replacement value, which means the business owner will receive a settlement amount sufficient to replace the property without deducting for depreciation. The Property insurance portion of a General Liability and property package policy also covers other people's personal property to the extent that the business owner is legally liable for the damage.

Who is covered?

  • All business partners
  • Corporate executives and directors
  • All employees
  • Subsidiaries with more than 50% ownership
  • Agents under written agreements with the business
  • Newly acquired organizations for the first 90 days
  • Legal representatives of the business
  • Volunteer workers acting under the owners discretion

In addition to the internal protection provided by a commercial liability policy, it will also protect the business from payments for bodily injury or property damage to a third party, for medical expenses accruing to the underlying incident, for the cost of defending lawsuits including investigations and settlements, and for any bonds or judgments required during an appeal procedure.

Auto Liability
This coverage is necessary for company-owned or leased vehicles and is very similar to a PAP but it is written as a commercial/business policy. Business auto coverage may include liability only or may also cover physical damage. The liability portion covers damage to other vehicles or property and injury to others for accidents for which you are at fault. Auto physical damage covers repairs of vehicles you own. Uninsured motorist coverage may be purchased with a business auto policy and it provides specified coverage for accidents involving uninsured or underinsured motorists.

Umbrella Liability
Just as the name implies, "Umbrella Insurance" covers or provides extra liability coverage to supplement your existing general liability and commercial auto policies.

Business Umbrella Liability Provides Three Kinds of Coverage:
1) Pays amounts which exceed the "per occurrence" or "aggregate limit" provided by your general liability or commercial auto policies. (Piece of Mind)
2) Pays liability losses which may not even be covered under the base policy.
3) Required by contract to protect a customer or another tech company that you are performing work on behalf of.

An Umbrella Insurance Policy liability does not coordinate with and provide additional limits of protection over a Professional Liability policy. Therefore, if you want a higher Professional Liability limit than $1,000,000, you must increase your professional liability insurance since it will not be covered under the umbrella policy. Professional and Director Liability


Related Articles
  1. Professionals

    Liability Insurance

    Liability Insurance
  2. Insurance

    Is It Safe To Be Without Umbrella Insurance Today?

    At low cost, you can buy significant extra liability coverage in case you're sued due to an accident or other trouble. See it as bankruptcy protection.
  3. Professionals

    Homeowner Endorsements and Auto Insurance

    Homeowner Endorsements and Auto Insurance
  4. Professionals

    Umbrella Liability Insurance

    Umbrella Liability Insurance
  5. Professionals

    Professional and Director Liability

    Professional and Director Liability
  6. Financial Advisors

    An Advisor's Guide to Prof. Liability Insurance

    A guide to what financial advisors need to know about professional liability insurance.
  7. Home & Auto

    Intro To Insurance: Property And Casualty Insurance

    By Cathy ParetoProperty and casualty insurance is insurance that protects against property losses to your business, home or car and/or against legal liability that may result from injury or damage ...
  8. Home & Auto

    Cover Your Company With Liability Insurance

    Every business is susceptible to legal action. Find out how to protect yours.
  9. Entrepreneurship

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  10. Home & Auto

    Filling The Gaps In General Liability Insurance

    Standard liability coverage may not be enough. Special needs call for specialized policies.
RELATED TERMS
  1. Business Liability Insurance

    Insurance that protects a company and/or business owner in the ...
  2. Automobile Liability Insurance

    Financial protection for a driver who, while operating a vehicle, ...
  3. Umbrella Personal Liability Policy

    A type of insurance policy that provides excess coverage above ...
  4. Commercial General Liability (CGL)

    A type of insurance policy that provides coverage to a business ...
  5. World Insurance

    A commercial liability policy with extended global coverage. ...
  6. Aggregate Limit Of Liability

    The most an insurer can be obligated to pay to an insured party ...
RELATED FAQS
  1. When does it make sense to buy personal liability insurance?

    Protecting yourself from lawsuits is important to the financial well-being of you and your family. Is personal liability ... Read Answer >>
  2. What is the difference between legal liability and public liability?

    Discover the differences between a general legal liability, a specific public liability and a professional indemnity in the ... Read Answer >>
  3. What is the difference between an expense and a liability?

    Learn what liabilities and expenses are, which financial statements they are listed on, and the differences between liabilities ... Read Answer >>
  4. What are some examples of current liabilities?

    Examine some common examples of current liabilities a company may owe within a year or less in order to accurately assess ... Read Answer >>
  5. How might a company's contingent liabilities affect its share price?

    Discover what contingent liabilities are, and how and to what extent such liabilities may have an impact on a company's share ... Read Answer >>
  6. Does renters insurance cover dog bites?

    Learn how a renters insurance policy can provide liability coverage for dog bites and how coverage may vary by state and ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center