CFP

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.



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