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. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  2. Insurance

    Cover Your Company With Liability Insurance

    Every business is susceptible to legal action. Find out how to protect yours.
  3. Insurance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  4. Insurance

    Filling The Gaps In General Liability Insurance

    Standard liability coverage may not be enough. Special needs call for specialized policies.
  5. Insurance

    It's Raining Lawsuits: Do You Need An Umbrella Policy?

    This type of insurance protects your assets and future wages against lawsuits. Find out if it might benefit you.
  6. Insurance

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  7. Financial Advisor

    What Kind of Insurance Do RIAs Need?

    Advisors spend a lot of time discussing insurance with clients but they also need to consider their own coverage needs as small-business owners
  8. Insurance

    How to Protect Your Assets From Litigation

    Personal umbrella liability insurance can offer you big-time legal protection relatively cheaply, in case your existing policies aren't enough.
  9. Insurance

    Insurance, Excess Insurance and Reinsurance: What's the Difference? (ALL)

    Understanding the differences might help you avoid being overinsured or underinsured.
  10. Insurance

    3 Reasons To Get Umbrella Insurance

    A relatively small annual premium can buy you a lot of peace of mind. In today's litigious society, that's money well spent.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center