Commercial Property Insurance

Commercial insurance functions for businesses similarly to the way home insurance protects a homeowner. It protects businesses from unforeseen damage to their building and its contents. Commercial insurance protects those who run a business on their property or those who lease to other businesses. Your commercial insurance will not protect your tenants against their losses. They will have to purchase a separate policy to protect their assets. Business Owners Insurance is an alternate option for small businesses (fewer than 100 employees, revenue less than $1 million).

Three forms of Commercial Property Insurance policies

Basic

This form covers damage caused by common perils such as fire, lightning, windstorm, vehicles, aircraft, explosion, hail, smoke, vandalism, and civil commotion.

Broad

This form covers all of the same perils as a basic policy, but also includes water damage, collapse, glass breakage, weight of snow, ice or sleet, falling objects, and sprinkler leakage.

Special

This form covers any loss except those specifically excluded such as flood, earth movement, war, nuclear disaster, wear and tear, and insects.

You may obtain coverage extensions to receive limited coverage for newly acquired or constructed property, the property of others, certain outdoor property, and the cost the replace destroyed records. Additional coverage protects you against indirect losses that result from direct loss. The removal of debris, preservation of property, fire department services charges, and pollutant cleanup and removal are among the expenses you can recoup through this coverage.

A coinsurance clause is included in most commercial property policies. It requires the insured to obtain insurance to a specified percentage of the actual cash value of the property.

Commercial General Liability Policies cover damages for bodily injury or property damages for which the insured is responsible. Personal injury, advertising injury, and medical expenses are also covered. The policy covers accidents that occur on or off the premises and damages arising from goods or products made or sold by the insured.

General Liability Coverage comes in two forms: occurrence form and claims-made form. The occurrence form covers bodily injury of property damage claims that occur during the policy term, regardless of when it is reported. The claims-made form covers only claims made during the policy term.

Personal Injury coverage protects against instances such as false arrest, malicious prosecution, detention or imprisonment, acts of invasion, libel, and slander.

Umbrella Liability insurance provides coverage that is broader than the insured’s primary policies. The main functions of an Umbrella Policy is to: provide additional limits above those covered in the insured’s primary policies, replace primary insurance when the limits of the primary policy are reduced or exhausted, and provide more coverage for claims that would not be covered under the primary policy.

There is no general Umbrella policy, since most are tailored to the needs of the insured.

Contact Us to learn more about liability insurance and to see if and Umbrella Policy is right for you.

Whether you have large delivery vehicles or company cars, you may be liable for damages due to accidents and damage they cause. Liability Coverage provides protection for bodily injury or property damage for which the insured is legally responsible. It also covers fees needed to defend the insured legally.

Additional Automobile coverage includes: Medical payments coverage (for medical and funeral expenses due to accident), Uninsured Motorist, and Underinsured Motorist.

You also must determine how far you want your automobile coverage to extend. You can have Any Automobile coverage, where autos owned, hired, or borrowed by the insured are covered. Other non-owned autos are included. Owned Auto coverage is for all autos that are owned by the insured. This type of coverage is for liability only. The final type of coverage is Non-Owned Autos. This coverage is for autos that are not owned, leased, hired, or borrowed by the insured. It covers autos owned by the insured’s employees or members of their households, but only while being used for the insured’s business or personal affairs.

Businesses with revenues less than 5 million may be eligible for a Business Owners Policy. A BOP is an economical way to acquire property and general liability coverage in one policy. An advantage of a BOP for small businesses is that the premiums are low, but policy holders are required to pay coinsurance. You can obtain coverage on a “named peril” or “all risk” basis.

BOPs are not as comprehensive as commercial property liability. There are defined limits for specific claims and they do not include professional liability coverage. You are not protected against claims of error, omission, or negligence.

Most policies cover business interruption, which means you will be reimbursed for lost income and expenses if your business is suspended due to disaster-related damage.

Kenneth –  all these will go on the OTHER INSURANCE page (Number 6 on the page)